Treat unregulated equity release with caution, expert advises

Consumers have been advised to be careful when considering whether or not to opt for unregulated equity release plans. The Society of Equity Release Advisers issued the warning after a provider, Equity IQ Ltd, began offering customers specific type of equity release scheme. Simon Chalk, equity release planner at LaterLiving, pointed out that the deals do not adhere to industry regulations and that the company is not authorised by the Financial Services Authority. The Property Income Plan at the centre of the controversy offers advantages that may appeal to homeowners who are unsure about traditional products. Mr Chalk explained that the confusion will arise when consumers fail to differentiate between the product and other formal schemes on the market such as home reversion plans and lifetime mortgages. The news comes after it was revealed by Callcredit Information Group that almost 70 per cent of Brits fail to seek adequate advice when faced with a financially difficult situation. Ashall Glover Financial Services are equity release specialists Posted by Edward Simpson