Which? magazine has issued a warning to property owners about high-risk schemes aimed at older people wishing to release equity from their homes. They report that "irresponsible advertising" is attracting customers into plans that could leave their properties worthless.
According to Malcom Coles, Editor of Which?, such schemes "could turn into a financial nightmare". Mr Coles also suggests that home reversion schemes, a type of equity release that lets homeowners sell only a part of their property in return for a smaller sum of money, should be avoided completely, because they are not yet regulated by the Financial Services Authority.
