KRS comments on 'Tonight' with Trevor McDonald on equity release

In response to yesterday’s ITV1 programme, Tonight with Trevor McDonald, that looked at Shared Appreciation Mortgages (SAMs) and Sale and Rent Back schemes in the UK, Dean Mirfin, Business Development Director at Key Retirement Solutions, the UK’s leading independent equity release specialist said: “SAMs were hugely popular in 1998 when Key Retirement Solutions formed as a specialist adviser in the equity release market, and at that time we warned many people about the risks of such plans. Like SHIP, we never recommended anyone take one of these plans out. Fortunately the equity release market has moved on hugely since then and it is now fully regulated by the FSA, with flexible and transparent products available.

“’Tonight’ also looked at the emergence of Sale and Rent Back schemes. Again, we have been issuing warnings to advisers and clients for many months on this unregulated sector of the property market.

“One of our biggest concerns is that Sale and Rent Back companies are marketing themselves as an equity release solution, and using scaremongering tactics to slam other regulated options, such as lifetime mortgages, which shouldn’t be allowed to continue as it will only confuse consumers.

“We urge anyone that is thinking of releasing the cash from their home to seek specialist independent advice, and should always involve the family in the process, so all the options and alternatives, such as downsizing, can be explored as equity release isn’t right for everyone.”