EQUITY RELEASE MIS-SELLING REASONS
There are many reasons you could have been mis-sold Equity Release. It may have been deliberate or accidental.
Either way the person(s) advising you to take out the Equity Release product should have ensured you were aware of all the options and scenarios, and this was in your best interests.
Check our list below and if you were subject to any of the reasons listed, let us know.
1. Failure to explain the risks associated with an equity release plan, such as the potential for negative equity or what circumstances could lead to loss of your property.
2. You were advised to take out an Equity Release plan without due consideration of your income, assets, savings, benefits and ability to raise or borrow money using other, less costly means.
3. You were advised to take out an Equity Release plan without due consideration to you future plans and needs. Moving, social care, dependents or other scenarios which could potentially drain your finances quicker and place a greater financial burden on you.
4. It was not made clear how this cash injection would affect your ability to claim means tested benefits at the time or in the future. Including pensions, universal credit, disability benefit, social care, cost of living allowances (Winter fuel payments) or any other valuable benefits.
5. You were not asked about children or beneficiaries, and how releasing equity in your property would affect them, inheritance expectations and tax.
6. You felt pressured into taking out Equity Release without adequate time for you to understand the costs and risks, and had time to consider other options.
7. Set-up and any on-going fees, commissions and charges were not clearly explained and written down for you to examine and understand. Especially where this affects cumulative interest repayments and the future value of your property.
8. Failure to discuss the exact reasons for you wanting to release equity in your property and if this was the best option against other potential options like "downsizing".
9. Failure to discuss any options and fees associated if you wished to reverse the equity released and repay early if you or a spouse or partner needed to go into care for example.
10. You were approached by a Financial Adviser or cold called and presented with a scenario where Equity Release was just too good to turn down and felt pressured into signing up.