Get advice before a lifetime mortgage
Britons should carefully consider their options and get professional advice before taking out a lifetime mortgage or another form of equity release.
That is according to over-50s group Saga, which is concerned many people are offering advice in this area that are concentrating on the product itself and not on the specific needs of the person taking out the equity release product.
"Under the right circumstances equity release can be a great way to access assets to help fund a more fruitful retirement, but it's not for everyone," said Saga chief executive Andrew Goodsell.
"We are concerned that too many retired people could be jumping into equity release without first considering the consequences and it's absolutely crucial that they seek specialist financial advice first."
Saga points out the equity release market is highly specialised and advisers should have appropriate qualifications and expertise.
"Homeowners with a regular income could look at finding a good deal on a loan that's secured against their property, which often results in better rates," Saga pointed out.
"Or they could look to cash in some investments they may have or consider downsizing to provide access to the funds they require."
There are several forms of equity release product, including lifetime mortgages, home reversion schemes, and home income plans.
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