Was equity release used to fund an investment that failed?
Some of the largest equity release losses arise where homeowners released money from their property and were encouraged to invest it into a scheme that later collapsed or underperformed.
Start Free ReviewInvestment losses
Large losses can continue even after the investment fails.
The investment may be lost, while compound interest continues to build on the lifetime mortgage.
Overseas property
Off-plan developments, holiday apartments or overseas projects that failed or never delivered promised returns.
Hotel or student rooms
Room-based investments, guaranteed income promises or resale claims that did not match reality.
Storage pods or bonds
Unregulated investments where liquidity, returns, security or risks may not have been explained.
Questions to ask
The review should connect the equity release advice to the investment route.
Equity release advice
- Why was equity release recommended?
- Were alternatives discussed?
- Was the investment use disclosed or encouraged?
- Were vulnerability or pressure issues considered?
Investment promotion
- Who introduced the investment?
- Were risks, fees and exit restrictions explained?
- Was the scheme regulated or unregulated?
- Did promised returns or guarantees fail?
Documents
Evidence that helps assess investment-linked equity release.
Advice documents
Suitability reports, fact finds, illustrations and adviser emails.
Investment documents
Brochures, contracts, payment records, updates and failure correspondence.
Loss evidence
Amount released, amount invested, current mortgage balance and evidence of investment loss.
Where GBP 120,000 was released and invested into a failed project, the review may need to consider both the lost investment and the continuing equity release balance.
Responsibility
Who could a review or claim be against?
Investment-linked cases often need two tracks: why equity release was recommended, and why the investment was promoted.
Equity release adviser
If the adviser knew, recommended or failed to question the intended investment use.
Mortgage broker or introducer
If a broker or introducer connected the homeowner to the equity release route or the investment route.
Financial adviser
If regulated advice was given on releasing funds, investing proceeds or managing retirement assets.
Investment promoter
If the scheme was promoted with misleading returns, guarantees, security claims or risk statements.
Developer or scheme operator
If the project, property development, hotel room, storage pod or bond operator failed to deliver.
Complaint or compensation route
If a regulated firm, successor firm, insurer, ombudsman or compensation scheme route may exist.
Where recovery may come from
The strongest route may not be the investment company alone.
Advice-linked recovery
If the equity release advice was unsuitable because the funds were intended for a risky or unsuitable investment, the adviser route may be central.
Promotion-linked recovery
If the investment was misrepresented, the review may need to assess promotional material, introducers, scheme operators and whether any regulated route exists.
Next step
Start an investment-linked equity release review
Tell us how the money was released, who recommended it, and where the funds were invested.
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