IFAs urged to recommend equity release plans
17 March 2011
Independent financial advisers (IFAs) are being urged to recommend equity release to retiring Britons.
This could lead to a rise in the popularity of lifetime mortgages, which enable homeowners to utilise some of the cash tied up in their property.
Research from the Equity Release Solicitors' Alliance (ERSA) has revealed that just five per cent of IFAs urge retirees to consider equity release despite one-fifth of Britons planning to utilise the value of their property, FT Adviser reported.
Claire Barker, chairman of ERSA, told the news provider: "It is encouraging that equity release has been featuring on the political agenda. With an ageing population and changes being made to the UK's pension system, the importance of personal retirement provision is only going to increase.
"As the home is most people's largest asset, it is natural that equity release should form part of pension planning and this research demonstrates that equity release is increasingly being seen as part of their retirement strategy."
Homeowners aged over 55 years who are curious about how the value of their property could offer them a tax-free cash lump sum can find out by calling Key Retirement Solutions for equity release advice.