Choosing to release some of the equity you have in your property is a big decision that must not be taken lightly. Your home is likely to be your biggest asset and as you get closer to retirement it will play an important role in your future plans for your finances.
As Access Equity Release have outlined in our other blogs, we can help you make the right decisions for your personal circumstances. But, while we can reassure you that our advisers are specially qualified to assist, you may want to know a little more about how the industry as a whole is regulated.
We have outlined some of the ways below:
The Financial Conduct Authority
Always make sure that the firm you use is registered with the Financial Conduct Authority (FCA). This ensures that the company and its agents are qualified to help you choose the right product for you and perhaps more importantly, tell you if there are better options for you than equity release. Access Equity Release is a trading name of Your Mortgage Decisions which is authorized and regulated by the FCA, FRN 459763.
Both lifetime mortgages and home reversion plans are regulated by the FCA. Lifetime mortgages are by far the most popular type of equity release. You cannot take out any type of equity release product without taking advice from a specially qualified equity release adviser. Read our blog about choosing an adviser.
The Equity Release Council
When choosing an adviser it is sensible to check if they are a member of the Equity Release Council (ERC).
Members must comply with the statutory guidelines as well as the ERC’s principles and rules to ensure best practices at all times. These include always putting the customer’s best interests first, offering the most suitable products and reassuring clients that they will be able to live in their own home for as long as they wish, as long as they abide by the terms and conditions of their contract.
One of the most important things to look out for is the Equity Release Council logo when performing an internet search.
Qualified advisers
Not all mortgage advisers can advise on releasing equity. Your equity release adviser must be specifically qualified in equity release.
A qualified adviser will help you choose the right product but will also advise you on how it may impact your state benefits, tax and other obligations. They will help you to understand every aspect of equity release, the pros and cons and if you do choose to go ahead, all the features of your equity release loan.
No negative equity guarantee
Products that fully meet Equity Release Council Product Standards are required to include a “no negative equity guarantee” which means the borrower will never owe more than the value of their property.
:: Use our Equity Release Calculator to work out how much cash you could release.
It is important to take expert advice on equity release before deciding whether it is right for you. Contact us to find out more from one of our highly trained advisors. We cover the whole of the UK, from Dorset to Glasgow.
