Earlier today, The BBC Morning Live programme covered the topic of equity release.
The episode explained what equity release is and provided an overview of both lifetime mortgages and home reversion plans, while also discussing the pros and cons of these options.
However, it was still factually inaccurate with their journalist making statements like:
“it’s not for holidays, for trips, for you know, an ideal renovation. you know it’s not a non-emergency repair. it’s not for grandkids”
At Pure Retirement, they see that 1 in 4 customer completions are for making home improvements with a large proportion of these funds for new kitchens, bathrooms etc., whilst 1 in 10 of their advances are used for holidays, and a further 1 in 10 are for gifting.
Importantly, it was recommended that viewers seek advice from a regulated member of the Equity Release Council. The episode also referenced the Council’s H1 total lending statistics and prominently featured the Council’s logo.
A key moment in the episode was the following statement:
“You also could pick a member of the Equity Release Council. This is a body that helps to not govern, but look after these companies and kind of keep them to certain codes and stuff. If you go with a member of the equity release council, you’re gonna get a structured financial advice process, you’re going to have access to independent legal advice during that process and the right to go and get it, and also, you’re gonna get an assessment of whether the product is right for you because this is a big deal. This is like when you’re paying for a mortgage, it’s a mortgage, just a different version.”
It’s just a shame that the programme makers could not have had the foresight to invite a qualified adviser onto the show to provide a more balanced view.
To review the BBC’s Morning Live episode please click here
Sources: BBC Morning Live, The Equity Release Council, and Pure Retirement Limited
