Government backs Committee recommendation to support equity release
It is great news that awareness of the potential benefits of equity release for homeowners aged 55 and over is not only growing, but is being supported by the Government.
The Government recently backed a Select Committee recommendation that equity release should be signposted to older people as a home finance option by the new “Single Financial Guidance Body”.
The Single Financial Guidance Body will pull together services currently provided by the Money Advice Service, the Pensions Advisory Service and Pension Wise.
In its response to the Housing, Communities and Local Government Select Committee, the Government said it hopes the new body will “be able to help people understand when professional financial advice could be useful and how to access it”.
The Single Financial Guidance Body will be able to signpost consumers to information on matters such as mortgages, equity release, shared ownership, shared equity and re-investing the proceeds of sales.The Government also said it wants high street lenders to provide clearer guidance on their policy with respect to lending to older people.The news was welcomed by the Equity Release Council Chairman, David Burrowes, “This recommendation amounts to a clear vote of confidence from Government that equity release plays a key role in later life planning conversations alongside other forms of housing finance.The Council has long championed the view that the option to unlock some of their housing wealth should be on every older homeowner’s checklist to consider, and the wide range of equity release products today can suit a similarly wide range of personal needs.“We welcome the growing consensus that consumers will benefit by taking a more rounded approach to their retirement planning and considering property assets alongside their savings and pensions. It is important this recommendation is implemented in a way that recognises the need for specialist equity release advice, and promotes joined-up thinking about the full range of options available and how people’s needs may evolve at different stages of life.”At Access Equity Release we are thrilled that more people are likely to take equity release into account when they consider their financial options. Whether they wish to raise money to fund their retirement or help a child or grandchild onto the property ladder, speaking to an expert adviser in equity release is the first step to discovering what options are available, the benefits and any potential risks.If you or anyone you know would like to consult an expert, equity release adviser, contact us. We are always happy to answer your questions about equity release.