Equity release red flags to watch out for

Most equity release advice in the UK is sound and well regulated, but poor practice does exist. These are the warning signs that the person in front of you is not acting in your interest. If you see any of them, slow down, take it away, and get a second opinion. A good adviser will never object to that.

You are being pressured to decide

Urgency is the classic warning sign. A deadline, a rate that supposedly disappears tomorrow, or a push to sign on the first meeting are all reasons to stop. Equity release is a decision for the rest of your life, and any genuine adviser will give you all the time you need.

Alternatives are not discussed

A proper adviser must consider downsizing, a retirement interest only mortgage, using savings or pensions, and help from family before recommending equity release. If nobody mentions any alternative, the advice is incomplete.

The adviser or plan is not an Equity Release Council member

The Equity Release Council standards include the no negative equity guarantee and the right to remain in your home for life. If the adviser is not a member, or the plan does not carry these protections, that is a serious red flag. You can check membership on the Council's own website.

You are encouraged to release more than you need

Because interest rolls up over time, releasing more than you need costs you and your estate far more in the long run. An adviser steering you toward the largest possible lump sum, rather than the smallest amount that solves the problem, is not putting you first.

Family and your own solicitor are kept out of it

Independent legal advice from your own solicitor is a requirement, not an optional extra. Anyone trying to skip it, rush it, or steer you to a solicitor who acts for the lender is cutting away your protection. The same goes for discouraging you from involving family.

You are asked for fees before any advice is given

Be wary of large upfront fees demanded before you have received any advice or recommendation. Most reputable advisers charge their fee on completion, and the basis of any charge should be clear and in writing from the start.

To understand the protections that should be in place, read the Equity Release Council standards explained, and see whether you are even the right candidate in who equity release is not for.