From This is Money:
Just a third of the 40 advisers checked on met all the tests and only five out of 12 equity release specialists passed the benchmarks. This compared to eight of the 28 general financial advisers.
Of those tested, 23 failed to carry out the fact-find they are meant to do on a customer before giving recommendations and seven did not even ask what the applicant’s income was: vital for working out how much they need to boost it.
Some advisers didn’t say how quickly debt grows or discuss compound interest, which boosts debt when none of it is paid off.
Martyn Hocking, of Which? added: ‘If you’ve been hit by plunging pensions, it might be tempting to release some much-needed money using your home. However, opting for an equity release plan is a big decision and it’s not one that should be taken lightly.’
The equity release industry has defended itself against Which?’s attack, but admitted that there needs to be serious improvements in advice given.
‘But continuous i…