Key Retirement Solutions: Which? equity release report

Dean Mirfin, Business Development Director of independent equity release specialist Key Retirement Solutions, comments on the statement from consumer group Which? Issued this week on equity release.

"Key Retirement Solutions welcomes Philip Spiers' comment that in all cases, independent, professional advice should be sought when considering equity release. However, when looking into the report a little further there are some areas that need clarification.

"The report states that equity release schemes may affect the amount of means tested benefits people are entitled to. However, if consumers seek the right advice, it is possible to release equity with no affect on the benefits they are entitled too. This is dependent on the amount released and uses of the monies. This is why specialist advice is essential which includes benefits analysis, which Key provide to all of our customers.

"The report also goes on to say that major problems arise when borrowers change their circumstances, for example moving to sheltered accommodation or a retirement home. More providers than ever now lend on sheltered accommodation, so the transition can be easier than ever. Key's advisers consider at outset with our customers their options for moving in the future giving specific regard to sheltered/retirement properties.

"When a consumer comes to us for advice on equity release, our fact find includes questions on attitudes to sheltered accommodation in the future, so they have the option up-front of a plan which has this provision.

"Equity release is not a last resort. All consumers in or nearing retirement that need to raise funds should consider equity release alongside all other options, including down-sizing, as one size doesn't fit all. Equity release is not the right solution for everyone and we would strongly recommend seeking specialist independent financial advice to discuss all the options available so that an informed decision can be made."

Key Retirement Solutions produces an independent guide to releasing equity from your home. This can be obtained by visiting keyrs.co.uk