Firms question validity of Which? 'scaremongering'

The consumer body suggested consumers might be better to seek alternatives to lifetime mortgages or home reversion plans as a typical equity release borrower releasing £80,000 through a lump sum roll-up scheme on a £350,000 property would actually end up paying £256,570 – based on an interest rate of 6% - or £343,350 after 20 years. However, Prudential has hit back at the report by arguing the consumer body makes claims which do not fully reflect the financial status of many investors. "Which? make a number of claims about equity release schemes in their recent press release, most of wh...