Alec Ruthven, director of independent financial planners A M Ruthven & Associates said it was important to speak with financial advisers, family members that stood to inherit money and a solicitor, so as to fully understand the details of any potential scheme.
He said that equity release schemes should be viewed as long-term investments, because many lenders attached penalties for leaving early or switching to another provider.
“I think you have to take it as a long-term thing and then review it in the future, and if it looks like it’s beneficial to change it, then by all means,” he explained. “But I wouldn’t go into it thinking I’m going to start skipping from one place to another. Don’t buy one of those in a hurry. You want to make sure you know what you’re getting into.”
Earlier this month, a spokesperson from Intune suggested that the most important thing for people considering taking on an equity release scheme was to communicate with family members.
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