We were also quoted in the Telegraph yesterday on potential equity release misselling.
Kevin Dowd, professor of finance and economics at Durham University, said misselling is “always a risk” with commission-driven sales and the equity release sector “has a less than stellar record in this area”.
Dean Buckner, policy director of UK Shareholders Association, formerly of the Bank of England, said ideally struggling homeowners would downsize to a smaller property and invest for a better income, adding: “Instead, they are being encouraged to take out equity release at currently high rates.”
Mr Buckner said homeowners were at risk of being sold loans that were not appropriate to them. He said: “There is a temptation for financial advisers not to dwell on these aspects, and providers should think carefully about how this could be viewed as mis-selling by future regulators.”