Nationwide has warned that it might take another three years before major lenders launch equity release products, as they may become involved in a mis-selling scandal if they enter the market too soon.
The provider is worried that consumers could complain to the Financial Ombudsman Service that they did not understand the advice given, and say the way forward may be to insist that customers should get written confirmation from a solicitor that they have understood the advice.
The Financial Ombudsman Service has said that complaints about equity release are still relatively low.
Our view
Provided paperwork is documented and clients have all risks explained to them, we can see no reason for their being a mis-selling scandal.
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