In a survey of advisers who sold equity release in the last year more than half also encountered clients who thought the product was too expensive and 48% admitted clients were worried about losing control or ownership of their property.

Barriers were also met because many would-be clients were concerned releasing equity would mean they could not leave an inheritance. What’s more, just under a third (30%) were worried about taking on debt in retirement.

Canada Life, which carried out the survey, thought these challenges could be causing some advisers to shy away from equity release.

Just 13% of those who supported a client with a lifetime mortgage purchase in the last year said they presented the idea to their clients, whereas nearly two thirds (64%) said their clients came to them with the idea.

Dispelling myths

Alice Watson, head of marketing, insurance, Canada Life said: “It’s clear that there are still massive misconceptions when it comes to equity release, and it’s our collective responsibility as an industry to dispel these myths.

“For many homeowners, equity release can be an effective way to fund retirement, while allowing them to stay in their homes.

“We know the concept of a forever home is hugely emotive and important to a lot of people, so it’s no surprise that a large number of equity release sales were motivated by the desire to stay put.

“However, while the findings also show that some advisers are still tiptoeing around equity release, homeowners are increasingly looking for flexibility and certainty when it comes to planning for retirement and property wealth has a significant role to play in this.”

Indeed, the survey also discovered more than half of advisers found clients over the last year were motivated by the prospect of being able to stay in their ‘forever’ home.

According to Canada Life the poplar reasons to release equity were to fund home improvements (85%), pay off existing debt (85%) and to support family and friends (73%).