“The rates are so high the products do not work for any clients other than people with no other options,” he said.
“The impact of the pricing makes the roll up of interest horrendous over time. Without a significant decrease in interest rates these products are not remotely appealing and in many cases recommending them would not be in the client’s best interest,” Newton said.
Likewise, Moneyfacts finance expert, Rachel Springall said it is imperative that anyone interested in taking out a lifetime mortgage seeks financial advice.
“Homeowners may find they can avoid pulling wealth out of their property altogether, but if it is the most appropriate choice then they must be conscious of how equity release works and its resulting impact,” she said.
jane.matthews@ft.com
