Research from SunLife reveals misconceptions about equity release are still rife, with only 6% of over 50s knowing all the key facts.
The study shows the least known fact is that most plans allow you to move home – just 24% knew this.
Only 30% knew that equity release plans can include a ‘no negative equity’ guarantee (meaning your estate is never left in debt).
Three-quarters of those who have released equity say it’s improved their overall happiness.
Just 6% of homeowners over 50 – who are aware of equity release – actually understand all of its product features according to the research.
For its Life Well Spent Report, SunLife interviewed 2,000 people across the UK aged over 50.
Many mentioned not wanting to leave their children in debt or with a difficult estate to deal with.
However, Sun Life points out that providers who adhere to certain rules and standards laid out by the Equity Release Council can include a ‘no negative equity’ guarantee.
This means the debt will never exceed the value of the house, so debt from the equity release cannot be passed on.