One in ten advised against equity release

More than £2.15 billion of property wealth was released last year as the market grew by 34% - double the rate of the previous year.

Advisers say on average around just 22% of clients are well-informed about equity release when they first see them, and around 18% have been rejected for mortgages.

The main objections from clients when they first consider equity release are concerns about not being able to leave an inheritance and opposition from their family.

Around 62% of advisers say clients are concerned about the impact on potential inheritance while 54% are worried their family will be unhappy. Around half (49%) are concerned about rates.

Average rates are currently around 5.66% and have fallen by nearly 1% in the past three years while the number of plans available has nearly trebled over the same period.

Andrea Rozario, Chief Corporate Officer at Bower Retirement, said: “The equity release market is growing strongly but will never be right for everyone and it is encouraging that advisers regularly recommend clients do not go ahead.

“Most clients are not well-informed about using property wealth before they start the process and need advisers with the skills and capability to explain their options thoroughly.

“Advisers need to fully understand all the alternatives while also being able to handle the emotional and family issues. There is a risk that some advisers are only offering equity release as an add-on to their main business and may not fully understand the options available.”