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  • Writer's pictureClaimline Legal

Mis-sold Equity Release. The Considerations Before You Take Out Equity Release.


Here is a brief overview of some of the key points you might want to consider if you think you have been mis-sold equity release in the UK. This is not a substitute for legal or financial guidance, and you should do your own research and consult a qualified expert before taking any action. Here are some bullet points:

  • Equity release is a way of unlocking some of the value of your home without having to sell it or move out. There are two main types of equity release: lifetime mortgages and home reversion plans.

  • Equity release can be a useful option for some older homeowners who need extra income or cash for various purposes, such as home improvements, paying off debts, or helping their family.

  • However, equity release is not suitable for everyone, and it comes with significant risks and costs. For example, it can reduce the value of your estate, affect your eligibility for means-tested benefits, and increase your debt over time due to compound interest.

  • Equity release should only be sold as part of an advised process, where the provider or adviser assesses your needs, circumstances, and preferences, and recommends a suitable product that meets your objectives and is affordable for you.

  • If you have been sold equity release that was not right for you, or you were not given clear and accurate information about the product and its implications, you may have been mis-sold equity release. This could mean that you have suffered financial loss or hardship as a result of taking out equity release.

  • If you think you have been mis-sold equity release, you may be able to pursue a compensation claim against the provider or adviser who sold it to you. However, this will depend on how the money released was used, how long ago the sale took place, and whether you have any evidence to support your claim.

  • The first step to making a claim is to contact the provider or adviser who sold you the equity release and make a formal complaint. You should explain why you think you were mis-sold, how it has affected you, and what you want them to do to put things right.

  • If you are not satisfied with their response, or they do not respond within eight weeks, you can escalate your complaint to the Financial Ombudsman Service (FOS), which is an independent body that can investigate and resolve disputes between consumers and financial firms.

  • The FOS will look at the facts and evidence of your case and decide whether the provider or adviser acted fairly and reasonably when they sold you the equity release. If they find that you were mis-sold, they can order the provider or adviser to pay you compensation for any financial loss or distress you have suffered.

  • The amount of compensation you can receive will vary depending on the type and extent of the mis-selling, and the impact it has had on you. The FOS can also take into account any benefits you have received from the equity release, such as the money you have spent or saved, and deduct them from the compensation amount.

  • The maximum compensation that the FOS can award is £415,000 (£160,000 if the mistake happened before 1 April 2019). However, this does not mean that you will automatically receive this amount, or any amount at all. The FOS will decide each case on its own merits, and there is no guarantee that they will rule in your favour.

Alternatively, you can contact Claimline Legal who will take your mis-sold equity release case on for you. We have over 13 years experience in successful financial claims and can add valuable experience to your claim.

Contact Claimline Legal on 0800 779 7457 or go to

I hope this helps you understand some of the issues involved in making a compensation claim against mis-sold equity release in the UK.

This is not a comprehensive or definitive guide, and you should not rely on it as legal or financial advice. You should always do your own research and seek professional help before taking any action.



mis-sold equity release


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