Claimline Legal UK, 137-139 High Street, Beckenham (2026)

Mis-sold Car Finance Claims

Mis-sold Equity Release Claims

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Call now 0800 779 7457 or go to www.claimlinelegal.co.uk

You do not have to use a Claims Management company to make your claim and are entitled to take your claim to your Financial Adviser or any regulatory body (FOS, PO, FSCS) yourself free of charge.

29/10/2024

HIGH COURT RULING ON MIS-SOLD CAR FINANCE IN FAVOUR OF THE CUSTOMER LEAVES INDUSTRY OPEN TO MORE SCRUTINY. MIS-SOLD CAR FINANCE.

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The recent High Court ruling on mis-sold car finance is expected to have significant implications:

1. Financial Impact on Lenders: Lenders like Lloyds have already seen a substantial financial hit, with Lloyds alone losing over £3 billion in market value1. This ruling could lead to billions in compensation claims.

2. Increased Transparency: The ruling mandates that motor finance brokers must fully disclose any commissions received from arranging car loans. This aims to prevent customers from being misled about the true cost of their finance agreements.

3. Consumer Protection: The decision is seen as a victory for consumer rights, potentially leading to a £21 billion payout to affected consumers. It sets a precedent for greater transparency and accountability in the motor finance industry.

4. Regulatory Changes: The Financial Conduct Authority (FCA) is expected to increase its regulatory oversight of motor finance agreements in response to the ruling.

This ruling could reshape the motor finance landscape, ensuring better protection for consumers and more accountability for lenders.

In response to the recent High Court ruling on mis-sold car finance, the Financial Conduct Authority (FCA) is expected to introduce several measures to enhance consumer protection and increase transparency in the motor finance industry:

1. Stricter Disclosure Requirements: Lenders will be required to provide clear and comprehensive information about any commissions or fees associated with car finance agreements.

2. Enhanced Oversight: The FCA will likely increase its regulatory oversight of motor finance agreements, conducting more frequent and thorough audits of lenders and brokers.

3. Redress Scheme: The FCA may consult on a redress scheme to compensate affected consumers, similar to the PPI mis-selling scandal.

4. Consumer Education: Initiatives to educate consumers about their rights and the details of car finance agreements, helping them make more informed decisions.

5. Penalties for Non-Compliance: Increased penalties for lenders and brokers who fail to comply with the new regulations, ensuring accountability and adherence to the rules.

These measures aim to create a fairer and more transparent car finance market, protecting consumers from misleading practices.
The car finance industry in the UK is quite substantial. As of 2023, it was valued at approximately £62.48 billion.

The market is projected to grow at a compound annual growth rate (CAGR) of 6.4% from 2024 to 2032, potentially reaching around £109.20 billion by 2032.

It's a significant part of the automotive sector, supporting both new and used car purchases.

If you feel you have been the victim of mis-sold car finance contact Claimline Legal today on 0800 779 7457 or go to www.missoldcarsfinance.co.uk

What is mis-sold car finance? If you purchased any new or used car using dealer finance between 2008 and 2021 it could have been mis-sold and you could be entitled to claim compensation.

04/09/2024

UK Homeowner Equity in 2024: A Record-Breaking Year. Another Opportunity For Mis-sold Equity Release ?

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In 2024, the equity held by UK homeowners has reached an unprecedented level, marking a significant milestone in the housing market. The total value of homeowner equity has soared to £5.7 trillion, driven by a recovery in house prices during the first half of the year. This article delves into the factors contributing to this growth, the implications for homeowners, and the broader economic context.

The Surge in Homeowner Equity

The rise in homeowner equity to £5.7 trillion is a testament to the resilience of the UK housing market. This figure surpasses the previous high of £5.6 trillion recorded in mid-2022, a period characterized by pent-up demand following the COVID-19 pandemic. The Equity Release Council (ERC) attributes this growth to recovering house prices, which have bolstered the value of properties across the nation.

Factors Driving the Increase

Several key factors have contributed to the increase in homeowner equity:

1. House Price Recovery: The first half of 2024 saw a notable recovery in house prices, which had been relatively stagnant in the previous year. This recovery has been pivotal in increasing the overall value of residential properties.

2. Low Loan-to-Value Ratios: The average loan-to-value (LTV) ratio in the UK has decreased over the past decade, from 28.9% to 22.2%. This means that a larger proportion of property value is owned outright by homeowners, contributing to higher equity levels.

3. Demographic Shifts: A significant portion of this equity is held by older homeowners, particularly those over the age of 55. This demographic owns property wealth worth £3.4 trillion, highlighting the role of property in retirement planning.

Regional Variations

The distribution of homeowner equity varies significantly across different regions of the UK:

• London: Homeowners in London hold the highest average equity, with figures reaching £583,618 per household. This is reflective of the high property values in the capital.

• South East and East of England: These regions also boast substantial equity levels, with averages of £426,749 and £378,686, respectively.

• Scotland, Wales, and Northern Ireland: While these regions have lower average equity compared to England, they still contribute significantly to the overall figure. The average equity in Scotland stands at £214,743, in Wales at £240,436, and in Northern Ireland at £206,417.

Implications for Homeowners

The record levels of homeowner equity have several important implications:

1. Financial Security in Retirement: For many older homeowners, property equity represents a crucial component of their retirement planning. The average equity of £321,213 for over-55s is nearly ten times the average annual net income for pensioner couples. This highlights the potential of property wealth to support living costs in later life.

2. Equity Release: The growing equity levels have spurred interest in equity release products, which allow homeowners to access the value tied up in their properties. These products are particularly appealing to those looking to boost their retirement income, manage debt, or fund care costs.

3. Economic Impact: The substantial equity held by homeowners can have broader economic implications. It provides a buffer against economic downturns and can stimulate consumer spending, as homeowners feel more financially secure.

Challenges and Considerations

Despite the positive trends, there are challenges and considerations to keep in mind:

1. Market Volatility: The housing market is subject to fluctuations, and future economic conditions could impact house prices and, consequently, homeowner equity.

2. Access to Equity: While equity release products offer a way to access property wealth, they come with costs and risks. Homeowners need to carefully consider their options and seek professional advice.

3. Policy Implications: The government and financial institutions need to ensure that the growing equity levels are leveraged effectively to support the aging population. This includes promoting informed choices about equity release and other financial products.

Conclusion

The record-breaking levels of homeowner equity in the UK in 2024 reflect a robust housing market and the significant role of property in personal financial planning. As house prices recover and loan-to-value ratios decrease, homeowners are seeing their property wealth grow, providing financial security and opportunities for the future.

However, it is essential to navigate this landscape with caution, considering the potential risks and seeking professional advice to make informed decisions.

The rise in homeowner equity is a positive development, but it also underscores the need for strategic planning and policy support to ensure that this wealth is utilized effectively to benefit individuals and the broader economy.

If you, or a loved one has been the victim of mis-sold equity release contact Claimline Legal UK today on 0800 779 7457 or go to www.missoldequityrelease.co.uk

.co.uk

Mis-sold Equity Release Compensation . Free case review. No upfront fees. UK owned and UK based Equity Release Claims service. Mis-sold Lifetime Mortgages and Home Reversion. If you have been mis-sold Equity Release contact Claimline Legal now. Get the support and compensation you deserve.

28/08/2024

The 3 Major Changes in Equity Release in the UK in 2024. Although be aware, there is still an opportunity for mis-sold Equity Release.

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Equity release has become an increasingly popular financial product in the UK, allowing homeowners to unlock the value of their property without having to sell it. In 2024, the equity release market has seen significant changes, driven by regulatory updates, evolving consumer needs, and technological advancements. Here are the three major changes that have shaped the equity release landscape this year.

1. Stricter Regulatory Framework

One of the most significant changes in 2024 is the introduction of a stricter regulatory framework aimed at protecting consumers. The Financial Conduct Authority (FCA) has implemented new rules to ensure that equity release products are sold responsibly and that consumers are fully informed about the potential risks and benefits.
Key Aspects of the New Regulations:

• Enhanced Disclosure Requirements: Providers must now offer more detailed information about the costs, risks, and long-term implications of equity release products. This includes clear explanations of interest rates, potential impacts on inheritance, and the conditions under which the loan must be repaid.

• Stricter Suitability Assessments: Advisors are required to conduct more thorough assessments of a client’s financial situation and needs before recommending an equity release product. This ensures that the product is genuinely suitable for the consumer’s circumstances.

• Increased Oversight and Penalties: The FCA has increased its oversight of equity release providers and introduced stricter penalties for non-compliance. This move aims to deter mis-selling and ensure that providers adhere to the highest standards of conduct.

These regulatory changes are designed to enhance consumer protection and confidence in the equity release market, making it a safer option for homeowners looking to unlock the value of their property.

2. More Flexible Product Options

In response to consumer demand for greater flexibility, equity release providers have introduced a range of new product options in 2024. These products are designed to offer more tailored solutions to meet the diverse needs of homeowners.

Innovative Product Features:

• Drawdown Lifetime Mortgages: These products allow homeowners to access their equity in smaller, more manageable amounts over time, rather than taking a lump sum upfront. This can help to reduce the overall cost of borrowing and provide more financial flexibility.

• Interest-Only Lifetime Mortgages: With these products, homeowners can choose to pay the interest on their loan each month, which prevents the loan balance from increasing over time. This option can be particularly attractive to those who want to preserve more of their property’s value for inheritance purposes.

• Hybrid Products: Some providers have introduced hybrid products that combine features of both lifetime mortgages and home reversion plans. These products offer a mix of lump sum payments and regular income, providing a more versatile solution for homeowners.

The introduction of these flexible product options reflects the evolving needs of consumers and the desire for more personalised financial solutions.

3. Technological Advancements and Digital Solutions

Technology has played a crucial role in transforming the equity release market in 2024. Providers are leveraging digital tools and platforms to enhance the customer experience and streamline the application process.

Technological Innovations:

• Online Portals and Calculators: Many providers now offer online portals where consumers can easily access information about equity release products, calculate potential loan amounts, and compare different options. These tools provide greater transparency and empower consumers to make informed decisions.

• Virtual Consultations: The COVID-19 pandemic accelerated the adoption of virtual consultations, and this trend has continued in 2024. Homeowners can now meet with advisors via video calls, making it more convenient to discuss their options and receive personalized advice.

• Automated Underwriting: Advances in artificial intelligence and machine learning have enabled providers to automate parts of the underwriting process. This can lead to faster approval times and a more efficient application process.

These technological advancements are making equity release more accessible and user-friendly, helping to attract a broader range of consumers to the market.

Conclusion

The equity release market in the UK has undergone significant changes in 2024, driven by stricter regulations, more flexible product options, and technological advancements. These changes are designed to enhance consumer protection, meet the evolving needs of homeowners, and improve the overall customer experience. As the market continues to evolve, it is essential for consumers to stay informed about the latest developments and seek professional advice to make the best financial decisions for their circumstances.

By understanding these major changes, homeowners can better navigate the equity release market and unlock the value of their property in a way that suits their needs and goals. However, it does not change what went on in the past !

If you, or a loved one has been mis-sold Equity Release contact Claimline Legal today on 0800 779 7457 or go to www.missoldequityrelease.co.uk

Mis-sold Equity Release Compensation . Free case review. No upfront fees. UK owned and UK based Equity Release Claims service. Mis-sold Lifetime Mortgages and Home Reversion. If you have been mis-sold Equity Release contact Claimline Legal now. Get the support and compensation you deserve.

15/08/2024

Understanding the Mis-Selling of Equity Release: Key Reasons and Implications. Mis-sold Equity Release.

www.missoldequityrelease.co.uk

Equity release schemes, designed to help homeowners unlock the value of their property without having to sell it, have become increasingly popular. However, despite the benefits, there are significant risks associated with these schemes, particularly when they are mis-sold. Mis-selling occurs when the product is sold inappropriately, often due to inadequate or misleading information.

Here are the primary reasons why equity release can be mis-sold:

1. Inadequate Explanation of Interest Charges

One of the most common issues with equity release mis-selling is the failure to fully explain how interest charges work. Equity release schemes, particularly lifetime mortgages, often involve compound interest. This means that interest is charged on both the initial loan and the accumulated interest over time. If consumers are not made aware of this, they might be shocked by the total amount repayable, which can be significantly higher than the amount initially borrowed.

2. Hidden Fees and Early Repayment Costs

Another critical issue is the lack of transparency regarding fees and early repayment costs. Many equity release products come with various fees, including arrangement fees, valuation fees, and legal fees. Additionally, if a homeowner decides to repay the loan early, they might face substantial early repayment charges. If these costs are not clearly communicated, consumers might find themselves in financial difficulty.

3. Impact on Inheritance and Estate Planning

Equity release can significantly impact the amount of inheritance left to beneficiaries. However, this is not always adequately explained to consumers. The reduction in the value of the estate due to the loan and accumulated interest can be substantial, affecting the financial legacy left to loved ones. Mis-selling occurs when advisers fail to discuss these implications thoroughly.

4. Failure to Explore Alternative Options

Advisers are expected to explore all possible financial options before recommending equity release. However, in some cases, they might not present or consider alternatives such as downsizing, traditional mortgages, or other financial products that could be more suitable for the consumer’s needs. This lack of comprehensive advice can lead to consumers opting for equity release when other options might have been more appropriate.

5. Unsuitable Product Recommendations

Equity release products must be tailored to the individual needs and circumstances of the consumer. Mis-selling of equity release occurs when advisers recommend products that are not suitable for the consumer’s specific situation. For example, a lifetime mortgage might not be appropriate for someone who plans to move or downsize in the near future.

6. Misleading Promotions and Advertising

Financial promotions and advertisements for equity release products can sometimes be misleading. They might highlight the benefits without adequately explaining the risks and downsides. Consumers might be enticed by the promise of tax-free cash without understanding the long-term financial implications. Misleading promotions can lead to consumers making ill-informed decisions.

7. Inadequate Personalisation of Advice

Personalized advice is crucial when it comes to equity release. Advisers must take into account the consumer’s entire financial situation, including their income, expenses, future plans, and health. Mis-selling occurs when advisers provide generic advice that does not consider the consumer’s unique circumstances, leading to unsuitable product recommendations.

8. Pressure Selling Tactics

In some cases, consumers might be subjected to high-pressure sales tactics, where they are rushed into making a decision without having adequate time to consider their options. This can lead to consumers agreeing to equity release schemes that are not in their best interest. Ethical advisers should provide consumers with all the necessary information and allow them ample time to make an informed decision.

9. Lack of Regulatory Compliance

Equity release schemes are regulated by bodies such as the Financial Conduct Authority (FCA) and the Equity Release Council (ERC). These organizations set standards to ensure that consumers receive fair and transparent advice. However, if advisers or companies do not adhere to these regulations, it can result in mis-selling. Consumers should always ensure that they are dealing with regulated advisers and companies.

10. Vulnerability and Coercion

Vulnerable individuals, such as the elderly or those with cognitive impairments, are particularly at risk of being mis-sold equity release products. They might be coerced or manipulated into agreeing to schemes that are not suitable for their needs. It is essential for advisers to recognize and protect vulnerable consumers, ensuring that they fully understand the product and its implications.

Here are some examples of misleading promotions in the equity release market:

1. Overemphasis on Benefits: Promotions might highlight the immediate financial benefits, such as tax-free cash, without adequately explaining the long-term costs and risks. For instance, they might not mention how compound interest can significantly increase the amount owed over time.

2. Incomplete Information on Fees: Some advertisements might not fully disclose all the fees involved, such as arrangement fees, valuation fees, and legal fees. This can lead consumers to underestimate the total cost of the equity release product.

3. Misleading Comparisons: Promotions might compare equity release products to other financial products in a way that makes equity release seem more favorable without providing a balanced view. For example, they might compare the immediate cash benefits of equity release to the slower accumulation of savings in a pension, without discussing the long-term financial implications.

4. Use of Ambiguous Language: Terms like “unlock the value of your home” or “release equity” can be misleading if they do not clearly explain that this involves taking on a loan secured against the property, which will need to be repaid with interest.

5. Downplaying Risks: Some promotions might downplay or omit the potential downsides, such as the impact on inheritance, the possibility of owing more than the property’s value (if not covered by a no-negative-equity guarantee), or the restrictions on moving home.

6. Inappropriate Use of Testimonials: Using testimonials from satisfied customers without providing context can be misleading. For example, a testimonial might praise the immediate financial relief provided by equity release without mentioning any long-term financial difficulties that arose later.

7. Failure to Highlight Alternatives: Promotions might not mention other financial options that could be more suitable, such as downsizing, traditional mortgages, or other financial products. This can lead consumers to believe that equity release is their only or best option.

These examples highlight the importance of thoroughly understanding the terms and implications of any financial product before committing. If you’re considering equity release, make sure to seek advice from a reputable and regulated adviser who can provide a balanced view and explore all your options.

Conclusion

Equity release can be a valuable financial tool for many homeowners, providing them with access to funds without having to sell their property. However, the potential for mis-selling highlights the importance of thorough, transparent, and personalised advice.

Consumers should be fully informed about the costs, risks, and implications of equity release, and advisers must adhere to regulatory standards to ensure fair treatment.

If you are considering equity release, it is crucial to seek advice from a reputable and regulated adviser. Ensure that all aspects of the product are explained clearly and take the time to explore all available options. By doing so, you can make an informed decision that aligns with your financial goals and circumstances.

If you feel you, or a loved one has been the victim of mis-sold equity release contact Claimline Legal now on 0800 779 7457 or go to www.missoldequityrelease.co.uk

NOTE: This article is for general information only. You should always seek qualified professional advice before making any financial decision.

Mis-sold Equity Release Compensation . Free case review. No upfront fees. UK owned and UK based Equity Release Claims service. Mis-sold Lifetime Mortgages and Home Reversion. If you have been mis-sold Equity Release contact Claimline Legal now. Get the support and compensation you deserve.

12/08/2024

UNDERSTANDING EQUITY RELEASE & LIFETIME MORTGAGES. MIS-SOLD EQUITY RELEASE.

www.missoldequityrelease.co.uk

Equity release and lifetime mortgages are financial products designed to help homeowners unlock the value tied up in their property. These options can provide a source of income or a lump sum, particularly useful for retirees looking to supplement their pension. This article will delve into the details of equity release and lifetime mortgages, exploring their benefits, drawbacks, and key considerations.

What is Equity Release?

Equity release is a way for homeowners, typically aged 55 and over, to access the equity (cash) tied up in their home without having to sell it. The money released can be taken as a lump sum, in smaller amounts over time, or as a combination of both. There are two main types of equity release: lifetime mortgages and home reversion plans.

Lifetime Mortgages

A lifetime mortgage is the most common type of equity release. It allows homeowners to borrow money against the value of their home while retaining ownership. The loan, plus any accrued interest, is repaid when the homeowner dies or moves into long-term care.

Key Features of Lifetime Mortgages:

1. No Monthly Repayments: Unlike traditional mortgages, there are no monthly repayments. Instead, the interest is rolled up and added to the loan amount.
2. Fixed Interest Rates: Many lifetime mortgages offer fixed interest rates for the life of the loan, providing certainty over how much will be owed.
3. Inheritance Protection: Some plans offer the option to protect a portion of the property’s value to leave as an inheritance.
4. Drawdown Facility: This allows homeowners to access funds as needed, rather than taking a lump sum upfront.

Home Reversion Plans

Home reversion plans involve selling a part or all of your home to a reversion company in exchange for a lump sum or regular payments. You retain the right to live in the property rent-free until you die or move into long-term care. At that point, the property is sold, and the reversion company receives its share of the proceeds.

Key Features of Home Reversion Plans:

1. No Interest Charges: Since you are selling a portion of your home, there are no interest charges.
2. Guaranteed Lifetime Tenancy: You can live in your home rent-free for the rest of your life.
3. Potential for Higher Payouts: Depending on your age and the value of your property, you might receive a higher payout compared to a lifetime mortgage.

Benefits of Equity Release

Equity release can provide several benefits, particularly for retirees:

1. Supplement Retirement Income: It can provide a much-needed boost to pension income, helping to cover living expenses, medical costs, or even fund holidays and home improvements.
2. Stay in Your Home: You can access the value of your home without having to move out.
3. Flexibility: With options to take a lump sum or drawdown funds as needed, equity release can be tailored to your financial needs.

Drawbacks and Considerations

While equity release can be beneficial, it’s important to consider the potential drawbacks:

1. Reduced Inheritance: Releasing equity will reduce the value of your estate, meaning there will be less to pass on to your heirs.
2. Interest Accumulation: With lifetime mortgages, the interest can accumulate quickly, significantly increasing the amount owed over time.
3. Impact on Benefits: Receiving a lump sum or regular payments from equity release could affect your entitlement to means-tested benefits.
4. Costs: There can be significant costs involved, including arrangement fees, legal fees, and early repayment charges.

Eligibility and Application Process

To be eligible for equity release, you generally need to be at least 55 years old and own your home outright or have a small remaining mortgage balance. The amount you can release depends on your age, the value of your property, and the type of equity release plan you choose.

The application process typically involves the following steps:

1. Financial Advice: It’s crucial to seek independent financial advice to understand the best option for your circumstances.
2. Property Valuation: Your property will be valued to determine how much equity you can release.
3. Application: You’ll need to complete an application form and provide necessary documentation.
4. Legal Advice: A solicitor will review the terms of the equity release plan and ensure you understand the implications.
5. Completion: Once approved, the funds will be released, and you can start using the money as needed.

Conclusion

Equity release and lifetime mortgages offer a way for homeowners to unlock the value of their property and improve their financial situation in retirement. While they provide flexibility and the ability to stay in your home, it’s essential to consider the potential drawbacks and seek professional advice.

By understanding the features, benefits, and risks, you can make an informed decision that best suits your financial needs and goals.

If you think you or a loved one has been the victim of mis-sold equity release contact Claimline Legal for a FREE case review. Call us no won 0800 779 7457 or go to www.missoldequityrelease.co.uk

NOTE: This article is for general information purposes only. Products and services mentioned may not suit your individual circumstances and needs. You should seek professional advice before making any financial decisions.

Mis-sold Equity Release Compensation . Free case review. No upfront fees. UK owned and UK based Equity Release Claims service. Mis-sold Lifetime Mortgages and Home Reversion. If you have been mis-sold Equity Release contact Claimline Legal now. Get the support and compensation you deserve.

05/08/2024

EQUITY RELEASE IS ON THE RISE IN 2024. BUT IS MIS-SOLD EQUITY RELEASE STILL A PROBLEM?

Industry data shows double digit growth in the equity release market during the second quarter of 2024. But does equity release still come with the same hazards?

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Increasing numbers of older homeowners are accessing equity release products to support their later-life needs and even bypass NHS waiting lists.

Higher interest rates and slowing house price growth had reduced the attractiveness of equity release in recent years but the latest industry data suggests consumers have been returning to the product in recent months, especially as the cost of retirement soars.

Figures from the Equity Release Council (ERC) show total lending increased by 15% to £578 million between the first and second quarter of 2024, while new equity release customers rose by 12%. There was a 4% quarterly rise in returning customers.

It makes the second quarter the busiest three-month period for the market since the third quarter of 2023.

This has been helped by the rates on lifetime mortgages – the most common equity release product – dropping slightly from highs of 8% since the start of the year.

However, total lending is down 13% annually and the rate of new customers has dropped by 22%, suggesting there is still some hesitation towards the product.

“Following a period of economic uncertainty, we are starting to see consumer confidence gradually return to the market with increasing numbers of new customers choosing to use their housing equity to support their needs in later life,” says David Burrowes, chair of the Equity Release Council.

“The pick-up in activity between the first and second quarters is a welcome reversal of the downward trend seen one year ago. There is a long way to go to unlock the market’s full potential, but there are reassuring signs in these figures that we are turning the corner and acclimatising to this unfamiliar interest-rate environment after years of rock-bottom rates."

What are people using equity release for?

Equity release lets homeowners over age 55 access the cash locked up in the property typically through a lifetime mortgage.

Borrowers can take a lump sum and then reserve the rest to access at a later date so they only owe interest on what they drawdown.

The ERC highlighted that new borrowers are making larger initial withdrawals than last year and are keeping less in reserve, suggesting people are using their advance to meet a specific need and reserving a modest amount for future use.

Repayments and interest are usually rolled up and are only repayable once the borrower dies or moves into a care home.
Paying off existing mortgages - particularly interest-only loans - is the main driver but borrowers are also using the product to either leave a gift for loved ones or to fund home improvements, the ERC said.

The product even appears to be filling gaps in access to healthcare amid reduced NHS services and long waiting lists.

“Due to NHS delays as a result of the pandemic, we've also seen people turning to equity release to fund hip or knee replacements,” says Scott Gallacher, director at financial advisory firm Rowley Turton.”

“There's little point having capital tied up in your home but being unable to enjoy your retirement due to a dodgy hip or knee.”
He has also seen people use the product to fund solar panels so they can reduce their energy bills.

The risks of equity release

Equity release is a useful product if you are looking to access finance later in life and don’t fit a traditional lender’s requirements.
The industry has faced criticism in recent years though for high fees and unclear product terms, but it has tried to improve its image with more flexible and transparent products.

Lifetime mortgages are priced higher than standard mortgage rates at between 7% and 8% compared with around 5% for a traditional home loan.

The main risks are leaving your loved ones with a bill once you pass away or move into care usually meaning the family home has to be sold and ultimately limiting the inheritance you can leave.

Some modern-day equity release products let borrowers make repayments and you can usually reserve a portion of the proceeds of the property sale to leave as an inheritance, which as Turton adds is “more of a concern for your children than you.”

If you, or a loved one has been exposed to mis-sold equity release contact Claimline Legal now for a FREE case review.

www.missoldequityrelease.co.uk

Or call us 24/7 on 0800 779 7457.

Mis-sold Equity Release Compensation . Free case review. No upfront fees. UK owned and UK based Equity Release Claims service. Mis-sold Lifetime Mortgages and Home Reversion. If you have been mis-sold Equity Release contact Claimline Legal now. Get the support and compensation you deserve.

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