Estate agents are increasingly helping customers who have been forced to sell their homes to pay off interest-only mortgages ahead of looming repayment deadlines, a survey has revealed.
A relatively small survey of 104 agents by equity release provider Key Partnerships found that 43% have seen increasing numbers of vendors selling to pay off interest-only mortgage debts.
Estate agents said they were regularly asked for advice and guidance on mortgages and remortgages by clients but just 50% of agents believe they know enough about the alternative route of equity release plans.
Will Hale, director at Key Partnerships, said: “Selling up to pay off an interest-only mortgage can make financial sense but it is worrying if older homeowners are being forced to sell and are not aware of all their options.
“Equity release enables people to stay in their home and not have to downsize, or even in extreme cases lose their house.
“Some lenders are engaging with equity release as a solution and we would urge others to follow.
“Estate agents are valued as a source of financial guidance and it is clear that those who can discuss equity release as an alternative to selling will be able to benefit from an additional revenue stream by referring potential clients to a specialist.”
I think the mis-leading word here is advice. As estate agents who aren’t qualified to give financial services advice, we shouldnt be giving any at all, as that is how some people have come a cropper over the years.
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