Equity release 'scandal brewing' akin to Equitable Life fiasco

Regulator ‘asleep at the wheel’

Victoria McKeever
clock
Equity release ‘scandal brewing’ akin to Equitable Life fiasco
Image:

Equity release ‘scandal brewing’ akin to Equitable Life fiasco

An undervaluation scandal is brewing in the equity release mortgage sector that is similar in nature to the Equitable Life fiasco of nearly two decades ago, a report from the Adam Smith Institute has warned.

The report, written by Durham professor of finance and economics Kevin Dowd, has said the ‘no-negative equity guarantees' (NNEGs) issued by lenders in the market lie at the heart of the problem. NN...

To continue reading this article...

Join Professional Adviser

 

  • Unlimited access to real-time news, industry insights and market intelligence.
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters.
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection.
  • Members-only access to the editor’s weekly Friday commentary
  • 
 Be the first to hear about our events and awards programmes.

Join

 

Already a Professional Adviser member?

Login

More on Equity release

According to Stephen Lowe, group communications director at retirement specialist Just Group, demand for equity release has recovered strongly from the pandemic wobbles

Equity release activity up 26% year-on year

‘Continued return to pre-pandemic market growth’

clock 02 August 2022 • 4 min read
LV= said: "Due to property price inflation, mortgage terms today are much longer than they were historically, and therefore many people may find themselves at retirement age without having fully paid off their mortgage."

1.5m UK adults retire with outstanding home loans - LV=

'Navigating the cost of living crisis'

clock 24 June 2022 • 3 min read
Failing equity release regulation needs rethink - lang cat

Failing equity release regulation needs rethink - lang cat

FCA 'blind spot'

clock 14 June 2022 • 4 min read