IFA Promotion (IFAP) is urging consumers to seek independent financial advice on equity release and has launched a guide to help demystify equity release plans.
The organisation says the demand for equity release advice, through its hotline and online search, has more than doubled since April 2004.
Further, figures from the Bank of England show the amount of equity people unlocked from their homes in the last quarter of 2005 jumped to £11.8bn compared to £8.9bn the previous quarter.
The guide, Equity Release – Unlocking money from your home, aims to demystify equity release plans by looking at the potential benefits and pitfalls of such schemes.
It addresses questions including:
- How do equity release plans work?
- What are the different schemes available?
- How might this affect my family?
- What are the alternatives and benefits?
- Where should I go for advice?
Karen Barrett, marketing director at IFAP, says: “Many retired people who manage on a small pension and limited savings are also living in properties which have soared in value in recent years so it’s clear to see why equity release has become a popular choice.”
She adds it is a highly complex area and the options can be overwhelming; yet another new range of lifetime mortgages will be launched this month, which will make it possible for property investors to release equity from their buy-to-let holdings or holiday homes.
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Emily Perryman on 020 7968 4554 or email [email protected].IFAonline
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