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Equity release experts identify "a troubling trend: children pressuring elderly parents to release home equity"

ended 27. February 2025

Brokers and equity release experts have flagged a “troubling trend” of more children pressuring their parents to release equity. One said: “I have walked away from a case this week. After conversations with the parents and children it became clear that all parties other than the son were uncomfortable. The son was the only one set to gain financially through this transaction and I expressed my discomfort and advised against proceeding.” Another warned: “As financial pressures mount, vulnerable seniors may be coerced by family members seeking funds for debt repayment, property purchases, or business ventures—decisions that may not align with the parent's best interests and could lead to exploitation.” A third said: “Equity release should be about financial freedom, not family pressure. While supporting loved ones is natural, parents shouldn’t feel like an ATM for their kids’ money worries.” The views of brokers are below.

7 responses from the Newspage community

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Ben Perks
Managing Director at Orchard Financial Advisers
The morality of brokers is definitely being pulled into question more these days. I have walked away from a case this week. After conversations with the parents and children it became clear that all parties other than the son were uncomfortable. The son was the only one set to gain financially through this transaction and I expressed my discomfort and advised against proceeding. The biggest issue for me is that they can be led by their son to the next firm or lender who may not pick up on this. How can we further protect vulnerable customers in the equity release space? There should be something we can do. Financial pressures faced by children is leading to a rise in ‘unconscious coercion’. In desperation to improve their circumstances cash strapped children are pulling at the heart strings of their equity rich parents.
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Bob Singh
Founder at Chess Mortgages
With the recent Budget changes to IHT, pensions, agricultural and Business Property Relief, and AIM shares it's no wonder more families are having discussions with their children and advisers around this topic. A good converation should involve the parents and beneficiaries to evaluate the family dynamics and assess any hint of dominance or coercion from the children. There is a fine line between coercion and educating the parents of the consequences if they fail to plan ahead. Some children could be frustrated at their parents' inaction as it's their inheritance that will be delayed or diminished if the assets are left to be attacked. A suitable life policy may not always be the silver bullet. A good adviser should be able to pick up signals in a face-to-face meeting and act accordingly and even have an initial confidential meeting and ask the relevant questions prior to a family meeting. The fact remains that everyone with a £1m+ estate needs to take advice sooner than later.
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Iain Swatton
Director at Exemplar Financial Services
Recent client conversations reveal a troubling trend: children pressuring elderly parents to release home equity for their own financial needs. In one instance, a son arranged for his parent to consult an adviser to initiate the process. Fortunately, after obtaining independent advice, the parent chose not to proceed. This situation raises significant concerns. As financial pressures mount, vulnerable seniors may be coerced by family members seeking funds for debt repayment, property purchases, or business ventures—decisions that may not align with the parent's best interests and could lead to exploitation. For example, some children urge parents to release equity to finance speculative investments or clear personal debts, potentially jeopardising the seniors' long-term financial security. If this trend continues, we may see an increase in family disputes and a decline in trust within the later life industry, undermining the industry's commitment to prioritising clients' welfare.
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Justin Moy
Managing Director at EHF Mortgages
We are seeing a strong reaction towards the IHT changes planned over the coming years, with homeowners in their later years more in tune to borrow now for family needs and enjoy more leisure opportunities such as holidays, reducing their estate value over time. There is a real resentment to pay death duties, but this is always open to abuse from those potential beneficiaries, and an equity release adviser will need to follow good practice and procedure. If there is the suggestion of any undue influence from children, it is important to interview those affected alone and be prepared to walk away from those situations where necessary. An industry-alert system would be ideal to protect those who are vulnerable in this situation, to warn lenders in particular.
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Simon Bridgland
Broker at Charwin Private Clients
Any good adviser would recommend involving children or other future beneficiaries in conversations which specifically impact on any potential or perceived inheritance, and as an industry this is where complaints, both upheld or not often stem from. So it does come with extra precautions needing to be taken by advisers as understandably, coerced borrowers are very much in the sights of those who would be considered the nearest and dearest to a borrower. Often with no malice, the intention to preserve and pass on estates as intact as possible can be misinterpreted as greed or manipulation. This scenario is becoming more evident with the fear of changes which could at the drop of a hat be implemented by our Chancellor and PM. It makes genuine coercive behaviours even harder to spot.
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Jamie Elvin
Director at Strive Mortgages
Equity release should be about financial freedom, not family pressure. While supporting loved ones is natural, parents shouldn’t feel like an ATM for their kids’ money worries. Brokers have a duty to ensure decisions are made in the right interest of the homeowner, not just the next generation. If pressure is creeping in, there should be a clear way to flag concerns—because a lifetime mortgage shouldn’t come with a guilt trip.
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Chris Barry
Director at Thomas Legal
Unlike a traditional mortgage equity release requires the client to have a face-to-face meeting with a solicitor in order for them to check duress and sign to say they are entirely comfortable but the client is in sound mind to make the decision to borrow and there is no pressure from the parties. Furthermore, the client is represented independently of the mortgage lender to provide true unbiased advice