06/02/07 - Regulator warns of risks of equity release

[The_Unwelcome_Guest]

**Regulator warns of risks of equity release **

Tuesday, 6 February 2007 11:57

The Consumer Director at the Financial Regulator is warning people about the complexities of the numerous equity release schemes available for older people to draw down cash from the value of their home.

The warning from Consumer Director, Mary O’Dea, comes as the Financial Regulator publishes a new guide to equity release, which explains the different type of equity release products available and the main issues to consider.

Research by the Financial Regulator has revealed that almost four in ten consumers aged over 50 would consider releasing equity from their homes at some point in the future.

O’Dea said that the benefit of equity release schemes is that they provide cash to meet current needs, but the risk is that consumers may not have enough money left to cover long term health or care needs.

O’Dea has urged consumers to look at all their options and take independent advice in advance of signing up to any schemes of this nature.

www.rte.ie

[Arthur_Daley]

The regulator’s doing an awful lot of warning all of a sudden. Obviously cover my ass time for the civil servants.