Research key to good equity release advice, says ERSA

The key to good equity release advice is thorough research of the products on offer, according to the Equity Release Solicitors’ Alliance, reports Mortgage Strategy.

Members of the equity release legal trade body have ranked the aspects of advice equity release advisers need to focus on in order to ensure a high standard of advice.

Comprehensive research of all the providers, plans and products available was ranked as one of the most important features of good advice, after the legal requirement of specialist equity release qualifications.

Clarity of advice and the need to discuss alternative options to equity release from the start were also earmarked by ERSA members as essential factors in good advice.

Claire Barker, chairman of ERSA, says: “After the mystery shopping report from Which?, IFA advice has been placed under the spotlight. While many IFAs offer exceptional advice to clients, some are clearly not so thorough."

“Alongside financial and medical considerations for each client, no categories could be deemed ‘unimportant’, and we feel that some aspects simply cannot afford to be overlooked if clients are to feel informed about their decision before seeking specialist legal advice.”

Equity release shifting to independent advisers

The withdrawal of Newcastle Building Society from equity release illustrates a move towards independent advices, says Dean Mirfin of Key.

"In this climate, there has been a shift away from direct salesforces. Consumers prefer to get independent advice" he said.

Newcastle is closing its Equity Release Service by the end of the year. In Retirement Solutions shut its doors in August.

David Wright of Sixty Plus said "In my view independent advice is by far the best way to obtain equity release advice. Going to a tied or multi-tied adviser means getting the best plan for you is down to luck rather than judgement."