Many people opting for equity release mortgages may be getting inadequate advice when it comes to things like debt management and compound interest, a study suggests.
Figures from the consumer group Which? show that a number of equity release advisers are failing to flag up potentially vital issues.
Researchers from Which? recently posed as customers to assess the standards of 40 different financial advisers.
The organisation found that only a third of those included in the study met all the benchmarks expected of them, with some failing to explain to consumers how quickly debts can grow over the course of an equity release scheme.
Martyn Hockling, editor of Which? magazine, suggested that people should be careful when opting for equity release plans.
He said: "If you’ve been hit by plunging pensions, it might be tempting to release some much-needed money using your home.
"However, opting for an equity release plan is a big decision and it’s not one that should be taken lightly."
Which? now hopes to see a tightening up of the advice process to ensure people are kept abreast of all things that could affect their debt management.
Figures from Unbiased.co.uk recently revealed that many financial advisers are looking to improve their qualifications in areas such as equity release.