More than half of late consumer calculators are spewing out “misinformation” about loan sizes, according to a study by Equity Release Group.
The company said after investigating 26 comparison websites, “more than 50%” revealed inaccurate calculations, with one anonymous large broker saying it was “the least accurate of all.” . 
Although this figure is lower than last year's survey, more than 40% of those surveyed have improved their data output, although it added that “progress still needs to be made.”
The group includes advice arm Equity Release Supermarket, advisor introduction service Equity Release Partners and Equitech, which provides specialist software to the sector. The survey does not include equity release supermarkets.
According to the investigation, the “most shocking” error incorrectly showed that a customer could take out a loan that exceeded the maximum amount available within the public market at the time (November 1). It is said that it was done.
In one example, an 85-year-old man with a property valued at £300,000 was offered a loan of £181,500. This equates to 60.5% of the loan to value when the highest release available at the time of the study was £159,075. LTV 53%.
The survey was conducted within two hours on the same day and measured against Iress, a product sourcing tool for advisors. Various scenarios were tested, including customer age, property value, and LTV ratio.
The investigation found that 15% failed completely due to unavailability of data, but “nevertheless continued to obtain consumer details under misleading pretexts”.
Also, a third of those calculators yielded lower LTVs and loan amounts than Iress.
The company said financial data for the equity release market to date has been “slightly lagging compared to what is available in the traditional mortgage market.”
But, he added, “there are now many more products and online platforms that allow consumers to research and discover their personal financial options.”
Mark Gregory, founder and CEO of Equity Release Group, points out: “Online tools offer flexibility, choice, and transparency around products so that people can begin to understand the different products that may be right for them. This is a step towards becoming an advisor.
“However, 100 percent accurate information is necessary for consumers to instill trust and trust in the data and within the industry.”
