Equity Release Group (ERG) has called for improvements in the equity release sector after research revealed that more than 50% of surveyed websites contained incorrect information.
The firm emphasised the need for a better consumer experience to meet the demands of Consumer Duty and utilise available smart technology.
Historically, the equity release market lagged behind the traditional mortgage market in providing accurate financial data.
However, there are now more products and platforms for consumers to explore personal financial options.
The research analysed 26 comparative websites, excluding data from Equity Release Supermarket, and found that more than 15% of calculators provided no data or were misleading.
Around a third offered lower loan-to-values (LTVs) compared to IRESS, a product sourcing tool, while 25% gave higher LTVs, which could mislead consumers.
One example showed that an 85-year-old with a £300,000 property was offered a loan amount of £181,500, exceeding the highest available loan at the time.
Mark Gregory (pictured), founder and CEO at Equity Release Group, said: “Providing a gateway to more extensive information, online tools, access to comparison websites, and personalised deals specifically based on individual circumstances is, we believe, helping to eradicate the general lack of information available.
“Online tools providing flexibility and choice around products, coupled with transparency, is a step forward in making it possible for people to begin to understand the different products that might work for them, before then going through to an adviser.
“However, we need information available to be one hundred per cent accurate in order for consumers to instil trust and reliance in that data and within our industry.”
Gregory added: “Technology has been the catalyst in our growth journey, powered by the vision for an independent market.
“Our aim is always to support consumers by providing real-time, accurate data, and to help the wider industry through the provision of smartER technology.
“We conducted a similar study earlier last year and since then we have seen a marked improvement; however, there is still some way to go.
“It is still a challenging time for the industry; however, it’s important we collectively drive the best possible consumer standards and we’re here to support any equity release firm in achieving that.”
