Equity release 'scandal brewing' akin to Equitable Life fiasco

Regulator ‘asleep at the wheel’

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

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. NNEGs guarantee...

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