Retirees are losing out on over £11,000 on average by buying their equity release product directly from a provider instead of using a financial adviser, according to Key Retirement Solutions (KRS).
KRS says many consumers believe they will save money on fees by not speaking to an adviser but many often end up paying higher interest rates by going direct. According to KRS, a 65 year old borrowing £50,000 over 20 years through a lifetime mortgage would pay a total of £187,779 over 20 years. However, the same product accessed through a financial adviser would benefit from a lower interest rate, meaning the total repaid would be £175,852. The consumer would save £11,928 over the 20-year term, while a ten year term would yield a saving of £3,128, and a five-year term saves £1,133. KRS s...
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