Nigel Waterson, Chairman of the Equity Release Council, says:

“We are pleased the government has recognised the importance of independent financial advice to anyone exploring care and support options. However, we have significant concerns about how they intend this to be made available to the general public.

“Our concern lies in the extent of local authorities’ role in providing this information.  While the Bill highlights their responsibility to signpost people towards independent financial advice, the explanatory notes also talk about local authorities outlining the available payment options, including deferred payment arrangements.

“We feel strongly that their role in this process should be purely mediatory. Rather than offering advice themselves, it is essential that local authorities steer consumers towards independent, specialist financial advisers who are qualified, regulated and able to explore all the avenues available to them. 

“Equity release may not meet everyone’s needs to pay for care and associated bills, but it has an important role to play and should be presented upfront among a range of options. The available products offer the choice to receive lump sums or regular payments, and rising property values mean that many over-55 homeowners can draw on a substantial amount of housing equity.

“It must also be made clear that the equity release industry is highly regulated with rigorous standards in place to ensure consumer protection. As well as guaranteeing specialist advice, the Council’s Code of Conduct – to which all members adhere – also gives customers the right to choose an independent solicitor who can ensure they understand the full implications of any agreement.”