Mis-Sold Equity Release

Have You Been Mis-Sold Equity Release?

In the UK, homeowners over 55 can take out equity release secured on their homes. If you or your loved ones have been sold one of these products over the last 12 years, then you may be able to pursue a compensation claim. However, this will depend on how the money released was used.

Typically, these loans are redeemed when the last of the homeowners pass away or when one or both need to move into a care home. In most cases, no repayments are made against the loan, and instead, the interest is allowed to compound, thereby eroding any remaining equity within the property. In some cases, an early repayment charge may be triggered. As the interest rolls up over time, often the equity left in the property diminishes rapidly for any family and loved ones named as beneficiaries in a will, especially when house price inflation is low.

Speak to our expert legal team if you believe you or one of your loved ones was mis-sold an equity release product.

Was an Equity Release Plan suitable for you or your loved ones?

In many instances, the sale of an equity release product may have been unsuitable, in particular, if:

• You were advised by an IFA to take Equity Release in order to fund a timeshare, fractional ownership product, any form of investment, for business purposes, or to pay for care home fees.
  
• You were not advised to speak to your family or take legal advice, about the loan that was being provided by the equity release provider.
  
• You were not advised to explore more cost-effective means of borrowing the money that you needed?
  

In some instances, the monies drawn down via an equity release plan may impact your ability to claim benefits, or if you draw down a large sum of money, your ability to draw down any further monies should the need arise.

There may have been other ways in which homeowners could have borrowed money, and from time to time, we even see instances where the IFA has recommended an equity release mortgage to enable a homeowner to invest in a product where the return on the investment is claimed to be greater than the interest being charged on the loan. The IFA hadn’t explained to the client that the asset in question was high risk or illiquid and that there was little chance of realising the investment to redeem the equity release mortgage.

There may have been other ways in which homeowners could have borrowed money, and from time to time we even see instances where the IFA has recommended an equity release mortgage, in order to enable a homeowner to invest in a product where the return on the investment is claimed to be greater than the interest being charged on the loan. What the IFA hadn’t explained to the client was that the investment in question was high risk or illiquid, and that there was little chance of realising the investment to redeem the equity release mortgage.

Why can I claim?

The FCA regulates all IFAs recommending a Lifetime Mortgage or a Home Reversion plan. Many rules and regulations apply to these products, particularly MCOB 8, which relates to “Equity Release: advising and selling standard”.

Our experts have a wealth of knowledge regarding the MCOB guidelines related to the sale of these products. After we have investigated and established how such a product may have been mis-sold, we will submit a detailed written complaint and the evidence supporting your case. In some instances, we can refer to precedents set in the High Courts to support your claim further.

How can I claim?

We can assist you if you believe you or one of your loved ones was mis-sold an equity release product, and you think that the sale of an equity release product has resulted in you suffering a financial loss. Many often discover that it’s not until a loved one has passed away that their loved ones have been sold equity release.

We can pursue a claim for compensation on your behalf for not just the original sum borrowed but the interest that has been charged, along with any penalty charges and any other losses suffered from taking such a loan within the last 12 years. If the IFA or broker no longer trades, we will direct the claim to the Financial Services Compensation Scheme.

Experts in Mis-Sold Equity Release Claims

We are experts in assisting consumers under a “no win no fee” agreement, and we are successful in the majority of claims we pursue. If you believe that you or a loved one was mis-sold an equity release loan then why not call us today to see how we can help you?