With inflation topping 10 per cent it could be tempting for families to consider an equity release scheme to free up funds, but Dorset Council and Citizens Advice are issuing a word of warning.

These 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.

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.”

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. For more information, visit www.dorsetcouncil.gov.uk/w/cost-of-living-help or seek independent advice from Citizens Advice.

Citizens Advice runs income maximisation sessions in Dorset Libraries. These free sessions are run by specialist advisers who can advise on money-related topics including budgeting and debt. They can also check benefits and charitable grants entitlement. For more information and to book onto one of the sessions as well as confidential advice and support, call the Dorset Adviceline on 0800 144 8848 or visit www.citizensadvicedorset.org.uk. Alternatively, for guidance about financial advice, visit www.citizensadvice.org.uk/debt-and-money/getting-financial-advice/