Equity release and vulnerable customers

Equity release is a decision people make later in life, sometimes at a difficult or unsettled time. Because of that, there are real safeguards in place to protect anyone who may be in a more vulnerable position. This page explains what those circumstances can be and how the protections work, so you or someone you care for can feel safe.

Mental capacity

To take out equity release you need the mental capacity to understand the decision, weigh up the consequences, and make a free choice. An adviser and your own solicitor both have a duty to check this. If there is any doubt, the process should pause until it can be properly assessed. Where someone lacks capacity, a registered lasting power of attorney may be able to act, but only within the powers granted and in that person's best interests.

Dementia and changing health

A diagnosis of dementia does not automatically remove the ability to make a decision, but it does mean extra care. Capacity can vary from day to day, so the timing of conversations matters. If health is changing, it is often better to involve family and to take the time to get it right, rather than to push a decision through.

Family pressure

Sometimes the pressure to release equity comes not from a salesperson but from within the family, perhaps an adult child who needs money. Your own solicitor must meet you, ideally on your own, to confirm that the decision is yours and that you are not being pushed into it. Wanting to help family is perfectly valid, but it has to be your free choice, made with the full picture in front of you.

Financial abuse

Financial abuse, where someone exploits an older person for money, is something advisers and solicitors are trained to watch for. The face to face independent legal meeting exists in part to catch it. If anything about a request feels coerced, or someone insists on being present and answering for you, that is exactly when the safeguards should step in.

The protections that apply

Two strong safeguards run through every regulated case. First, you must receive independent legal advice from your own solicitor, who confirms you understand the plan and are acting freely. Second, advisers operate under the FCA's rules on vulnerability and its Consumer Duty, which require them to identify when a customer may be vulnerable and to take extra care to deliver a good outcome. These are duties owed to you, not boxes to tick.

If you are worried about poor practice, the red flags to watch for are set out plainly, and the protections every plan should carry are in the Equity Release Council standards explained.