By Adam Williams, Sunday Telegraph.
.. those looking to release equity have been urged to compare the fees charged by advice firms. The UK Shareholders’ Association, a not-for-profit consumer group, found that some homeowners could be charged almost 10 times more if they used certain advice firms. All equity release sales must be conducted through an adviser.
But the UKSA said the fee often bore no relation to the amount of advice given. It found that one broker, Age Partnership, charged a fee equivalent to 2.25pc of the cash released. This would mean that a 70-year-old taking out a 40pc mortgage on a home valued at £750,000 would pay £6,750 in fees.
[..]
The UKSA questioned whether there was a potential conflict of interest at firms that only charged customers who were sold a loan, rather than charging for the advice itself.