Elderly people considering releasing the equity in their homes are often better informed than is imagined.

Such is the opinion of the managing partner of Caesar and Howie, David Borrowman, who has stated that pensioners are in many cases more financially astute than first-time buyers.

Writing in the Sunday Post, Mr Borrowman responded to reports of the perceived vulnerability of older people when considering equity release options, such as lifetime mortgages and home reversion plans.

Rather than being talked into a financial agreement which they do not understand, Mr Borrowman suggested that "most people who enquire about this option have researched it thoroughly".

"They often have the time and leisure to look into the market and consider all their options before making a decision," he continued.

Describing fears that elderly people could be unwittingly spending their children's inheritance as "unfounded", Mr Borrowman added that, as young people are earning more than their parents' generation, many are encouraging their parents to investigate equity release in order to fund an enjoyable and financially secure retirement.

In other news, Intune, a subsidiary of Help the Aged, has said that confidence in home reversion schemes and other equity release services have benefited from increased consumer confidence following the inception of regulation by the Financial Services Authority.