Around one in 10 potential equity release clients are advised to take other solutions by Bower Retirement’s advisers.
While more than £2.15bn of property wealth was released last year, as the market grew by 34%, advisers regularly recommend clients look to other ways of increasing retirement income.
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.”
The statistics revealed how 18% of equity release clients have been rejected for mortgages, and only 22% of clients are well informed about equity release.
Average rates are currently around 5.66% and have fallen by nearly 1% in the past three years, whilst the number of plans available has trebled in the same period.
Rozario added: “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.”