Dorset Council is partnering up with Citizens Advice to ask people to think carefully before committing to equity release schemes.

It comes as residents look for ways to ease the burden of the cost of living crisis: equity release is a term for a range of schemes whereby funds are released from a property.

Reasons for taking out equity release can vary but, with the increase in the cost of living, more people are looking for ways to supplement their income - especially those on a fixed pension.

Dorset Council said the schemes often give people considerably less than the market value of their home and can require some upfront costs, including arrangement fees, legal fees and a survey of the property.

They said: "Before taking out any new loan or signing onto any equity release scheme, residents are encouraged to shop around and seek independent financial advice. Many providers do offer some reassurances such as a no negative equity guarantee, meaning the money to be paid back will never be more than the total value of the property, however this still means the market value may be taken up by interest or other costs."

Cllr. Laura Beddow, Dorset Council Cabinet Member for Culture, Communities and Customer Services said: “It is important that residents shop around and look at all the options before signing onto any scheme.

“We encourage residents to seek advice with organisations such as Citizens Advice to see if there are other benefits or assistance available.

“These organisations can signpost residents onto Independent Financial Advice before making any decision”

A spokesperson for Dorset Council said: “For those considering equity release schemes you may wish to consider other benefits and options or check that you’re receiving all the benefits you’re entitled to.”

Citizens Advice income maximisation sessions for free at Dorset libraries. The sessions are run by specialist advisors who discuss money-related topics including budgeting and debt. They are also able to check eligibility for benefits and entitlement to charitable sessions.

For more information on how to book a session call the Dorset Adviceline on 0800 144 8848.

For more information available on the support from Dorset Council visit their website and search for ‘cost of living help’ or seek independent advice from Citizen Advice.