50connect Launch Equity Release Centre

Posted on: 05 June 2008 by

50connect, in an attempt to combat rogue selling, launch their own nationwide advisory service for retired homeowners looking to release capital from their home.

For Immediate Release: 10th May 2004

50connect, in an attempt to combat rogue selling, launch their own nationwide advisory service for retired homeowners looking to release capital from their home.

An increasing number of older people, eager to cash in on the value of their homes, have taken out equity release schemes, but many people are losing out, 50connect warn, because of hidden loop holes in many popular schemes, which can leave those involved financially worse off.

Philip Shaw, Finance Columnist at 50connect says; “Many people who sign up for an equity release scheme are often duped initially by the amount of cash providers put on the table. But what looks like a great deal at first can sometimes have many hidden extras that sell the consumer short. The difference between the best and worst plans can sometimes run into thousands of pounds.”

Overall, total borrowing by pensioners through equity release schemes stands at £2.3 billion, but the future market is predicted to reach £100 billion in the next few years as more retirees top up flagging pensions by cashing in on rising property values.

With the growing number of individuals embarking on equity release schemes, 50connect echoes the recent concerns of The National Consumer Council (NCC) and The Council of Mortgage Lenders, and urges those interested in pursuing the scheme to be caution.

“There are several points to consider before taking up an equity release scheme,” continues Mr. Shaw, “if you go ahead with the loan, it is worth finding out if your partner can continue living in the property when you die, or if the interest rates you pay back are capped or set to rise with inflation. Many schemes also carry penalty charges if you pay back your loan early. It is worth finding out all you can before deciding on which scheme to go with.”

50connect believe that a number of equity release schemes are deliberately misleading older homeowners to take out schemes that are not suitable for them and could prove potential problems for themselves and their families in the future.

In an attempt to provide more accurate and less biased information, 50connect, in association with equity release experts Key Retirement Solutions, have decided to open their own equity release centre. “Too many older homeowners are being ripped off by equity release schemes,” warns Mr. Shaw, “By opening our own equity release centre we hope to allay the fears of those interested in releasing capital from their home, by providing a no nonsense service from a brand that older consumers know and trust.”

The 50connect Equity Release Centre is not tied to any single representative so the centre can provide consumers with information on a range of plans best suited to the individual.

Key Retirement Solutions are specialists in equity release and understand the subtle differences between many different schemes currently available and can help those interested in the schemes to work through the pros and cons of each.

The 50connect Equity Release Centre believe those interested in accessing money from their home should as the following questions:

• Is there a minimum age requirement?
• Does my property have to be worth a certain amount?
• Do I need to own the freehold of the property?
• How much money do I want to make from my home?
• Would I want a cash lump sum, monthly payments or a mixture of both?
• Will the regular payments rise with inflation?
• Will I be able to stay in the house for as long as I want?

Questions To Ask Your Equity Release Advisor:

• Do you specialise in equity release schemes?
• How many have you arranged?
• Will I be able to use my own solicitor?
• Is it possible for me to take a lump sum, monthly payments or a mixture of both?
• What sort of income can I expect to receive from your plan?
• Can I live in the property for the rest of my life?
• Will I be able to move to another property if my circumstances change?
• Can the rate of interest that I pay go up? If so, is there a cap on it?
• What are the financial risks involved in equity release? Could I end up owing more than my property is worth?
• How much money can I expect to receive from the scheme after all the fees have been paid?

To find out more about equity release visit: http://web.archive.org/web/20051119000608/http://www.releasingcapital.co.uk/


50connect.co.uk is part of the 10Media.net group of companies and is the leading online web portal for the over fifties. With 902,000 monthly users, 50connect offers the most significant research point for the attitudes of the over fifties.

Key Retirement Solutions are one of the country's largest independent financial advisers to specialise in the equity release market and last year helped more than 40,000 older homeowners decide whether equity release was right for them.

For more information and interview requests contact Dale Lovell, telephone 01753 850606 or email: dlovell@50connect.com

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