is equity release safe

Since 1991, the industry has also been overseen by its governing body – the Equity Release Council (ERC). Rest assured, you’ll be in safe hands. Equity release is just like any other mortgage, in that the sum borrowed must be repaid with interest at a future date. Equity release refers to a range of products letting you access the equity (cash) tied up in your home if you are over the age of 55. The purpose of this site is to explain in simple terms how Equity Release works. This is an area of critical importance when you’re planning to release money from your home. Find out what’s involved and how long it takes. If you'd like to know more, please ask your provider. As mentioned previously, the Equity Release Council requires that you have at least one face-to-face meeting with a solicitor as a compulsory part of the equity release application process. No lender, broker or adviser can operate in the UK without FCA authorisation. By providing your details you are giving us consent to contact you with Equity Release information. Any equity release company that has the Equity Release Council logo on their material must ensure you can still live in your home until you die or move into permanent care. You also have the right to ask a solicitor to check all the documents before signing up to a scheme. Discover how much money you could release across all the available equity release plans. Find out how much money you could potentially release with an interest-only lifetime mortgage. With lifetime mortgages, you always own your home and any increase in its value is yours. Many factors determine the size of your equity release loan. Understand what they are and how much you can borrow. 6 Safeguards and Guarantees. Plans with fixed interest rates for life, meaning you'll always know how much you must repay in the future. Despite past concerns, equity release is now considered to be a safe and effective way of raising funds. All equity release products are regulated by the Financial Conduct Authority (FCA) with all lenders being members of the Equity Release Council. For many homeowners over the age of 55, equity release could be a good option to borrow money to supplement their incomes, repay debts, enjoy some of life’s luxuries or financially help loved ones. For homeowners over 55 that want to access the money tied up in their home. You can take the money you release as a lump sum or, in several smaller amounts or as a combination of both. We also appreciate that taking out equity release is a big financial decision and that’s why our patient and experienced advisers provide quality advice from the whole of the market, with no pressure. Equity release schemes are relatively safe as the equity release providers who provide the equity release schemes are regulated by the financial conduct authority and most equity release providers are members of the equity release council which provides them … You can be certain that you won’t be forced into making any decisions that aren’t right for you or your family. is rated Find out how much money you could release with a drawdown lifetime mortgage. There are protections and safeguards in place to ensure that equity release is safe. To help customers decide whether equity release is right for them, a number of companies provide a free equity release calculator to show a rough estimate of the amount of equity th… Equity release plans are safe because they are regulated and offer certain protections. OneFamily Advice Limited is registered in England and Wales at 16-17 West Street, Brighton, BN1 2RL registered number 09188369 and is authorised and regulated by the Financial Conduct Authority. It’s that simple. Find out how much money you could borrow when taking out a lifetime mortgage against your second/holiday home. We won't share your details with other companies. Any form of equity release is regulated by the Financial Conduct Authority (FCA). Equity release schemes are forecast to soar in popularity as the elderly fall back on the value tied up in their homes to top up dwindling pensions. You are able to unsubscribe and so not receive any more emails from us at any time. Plus, all equity release plans come with a no negative equity guarantee. Safe Equity Release since 1991. Equity release is different from other forms of borrowing because you don’t have to make any monthly repayments unless you want to. Find out how much you could borrow by selling a percentage of your property for a cash lump sum. Equity release is a big financial decision. Learn about how they work and the range of flexible plans available. Equity release is, in a nutshell, a way to unlock the value of your property and turn it into a cash lump sum. While there are no potential dangers or pitfalls as such, the you should understand that equity release will reduce the inheritance you leave for your family. Equity release products are safe as they’re regulated by the Financial Conduct Authority (FCA) and governed by the Equity Release Council (ERC). How safe is equity release? As the interest is compounded, then the total amount to be repaid could increase significantly over time. Recipients of these ‘gifts’ may have to pay inheritance tax in the future. We offer an impartial, whole-of-market service to find the best plan for you. So while, equity release may or may not be right for you financially, dealing with a Ship provider means it should be safe. This means you can repay a plan without penalty within three years of a partner dying or going into long-term care. You are able to unsubscribe and so not Learn how home reversion schemes work here. Key Equity Release can help you discover if equity release is right for you. The industry is now regulated by the Financial Conduct Authority (FCA), the financial services watchdog and regulator in the UK. Downsizing protection which means that you can repay your equity release plan penalty free and move home once your plan been in place for at least 5 years. Mortgage extensions . The SAFE investor receives the futures shares when a priced round of investment or liquidity event occurs. Is Equity Release Safe? However, equity release isn’t entirely risk-free. At Retirement Solutions, we will only recommend Lifetime Mortgages that are approved by the Equity Release Council. They must also follow the FCA’s strict codes of conduct. You don’t need to have fully paid off your mortgage to do this. Born from an expansion of the remit of SHIP (formerly Safe Home Income Plans) the Equity Release Council represents the providers, qualified financial advisors, lawyers, intermediaries and surveyors who work in the equity release sector. You can release money from your second or holiday home. Free to use, equity release calculator range. Born from an expansion of the remit of SHIP (formerly Safe Home Income Plans) the Equity Release Council represents the providers, qualified financial advisers, lawyers, intermediaries and surveyors who work in the equity release sector. You could release money from your buy-to-let investment portfolio. The loan amount will need to pay off any existing mortgage secured against the same property. The new breed of plans also come with a wide range of features and options, which you can tailor to create a plan that is right for you, both now and in the future. There are though many ways that you can manage the balance, through the lifetime mortgage plan and the features you choose. You must be over 55 and a homeowner. If you’re thinking of taking an equity release plan, you can rest assured that our advice is fully regulated by the Financial Conduct Authority and the plans we recommend meet the Equity Release Council standards. Learn how these lifetime mortgages work. Equity release may not be your only solution. All these solicitors offer a home visit if required and a competitive pricing structure, backed up by a 'no completion, no fee' guarantee. Fixed early repayment charges, knowing exactly what the penalty may be, if you wish to repay your plan early. Learn what they are. Learn more here. Although in the past equity release has received some negative press, the industry has come a long way over the last 15 years to keep you and your home safe. Read the OneFamily Privacy Notice. Equity release products are safe as they’re regulated by the Financial Conduct Authority (FCA) and governed by the Equity Release Council (ERC). Plus, all equity release plans come with a no negative equity guarantee. If you are releasing equity via a lifetime mortgage, so long as you comply with the conditions of the mortgage your home will remain yours and any increase in its value is yours. All of our advisers follow strict rules and guidelines, ensuring you receive the right recommendation for you. Find out the maximum you could borrow with a retirement interest only mortgage (RIO) – a residential mortgage, based on income that allows you to borrow on an open - ended basis into retirement. Protecting your interests. Like any of life’s big decisions, it’s only natural for you to have reservations about equity release. Require monthly interest and or capital repayments. If you’re not sure whether any of our other products are suitable for you, it’s worth speaking to an independent financial adviser (IFA). *Open Monday to Thursday 9am to 6:30pm, Friday 9am to 5pm and Saturday 10am to 2pm. Rest assured that all the Equity Release Supermarket’s advisers are listed as qualified members of the Equity Release Council. Is equity release safe? We won't share it with other companies. That all those taking out equity release have at least one face-to-face meeting with an independent solicitor. Although equity release products are like traditional mortgages in several ways, there are some crucial differences that can benefit the customer. There are several ways to find an adviser- in fact, OneFamily Advice offer a lifetime mortgage advice service with considerable benefits. Retirement Solutions are members of the Equity Release Council, the industry body for the UK Equity Release sector. Lifetime mortgages carry a no negative equity guarantee to ensure your estate won’t have to pay back more than the amount received from the sale of your home - provided the terms of the mortgage are being met. Learn more here. And lastly, some equity release plans do come with large early repayment charges and so if you think that you may want to repay your plan at some point in the future, then talk to your Equity Release Supermarket adviser about this. Many years ago, the equity release schemes that were available were not regulated. to learn more about the protections that are in place that make equity release a safe way to borrow. Require monthly interest only repayments. If you are releasing equity via a lifetime mortgage, so long as you comply with the conditions of the mortgage your home will remain yours and any increase in its value is yours. Calls to freephone numbers are free from UK landlines and personal mobile phones. If you are unsure if your adviser is one of them, it’s a good idea to check the Equity Release Council’s member’s directory to make sure they are. Lifetime Mortgage Advisers Anna and James discuss how the industry has changed over the last 15 years to the benefit of consumers. Also, there is a governing body called the Equity Release Council which sets out must-have features that provide an extra safety net. Having a joint equity release plan is important because it means that your spouse or partner won’t have to move out of the home if they outlive you, or if you have to move into permanent long-term care. I don't recommend that you consider Equity Release until you have looked at all other possible options to raise funds. These can help you manage the future balance of your lifetime mortgage by reducing the balance on which interest is charged. You can learn more about this in our article How much does equity release cost? receive any more emails or calls from us at any time. Why is it important to have expert financial advice when taking out an equity release plan? The Equity Release Council is the industry body for the equity release sector. Mortgages that continue into retirement based on income and affordability. RIO Mortgages continue into retirement based on income and affordability. In this guide we’ll look more closely at the ins and outs of releasing equity from your home, to help you understand the topic better and make an informed choice. Mr & Mrs J - Weston-Super-Mare, North Somerset, Mr & Mrs K - Milton Keynes, Buckinghamshire, Equity Release Supermarket If you’re already in receipt of benefits, your entitlement may be affected. Find out what you could potentially save by switching to a new plan. Please read our Privacy Policy for The most popular equity release scheme. Lifetime mortgage where regular interest repayments help control the final balance to be repaid. Is Equity Release Safe? Equity release could present a few financial risks that you should be aware of. Equity release is now safer than ever and progressively becoming a valuable tool for anyone aged over 55 who needs fast access to cash. The protection starts very early on. Learn all about equity release. Although this wasn’t always the case, all equity release products and practitioners are now regulated by the UKs financial services watchdog, the FCA. The dangers of these schemes were that they didn’t offer the legal protections of modern-day plans. Equity Release Supermarket is a long-standing member. If you choose to repay your lifetime mortgage early. It’s a Financial Conduct Authority requirement that you get appropriate advice before taking out equity release. Learn more about the pros and cons of equity release. Why not find out how much money you could release with our equity release calculator? For example, if you borrow £100,000 at an interest rate of 4%, after 18 years, the total amount to be repaid will have doubled to £200,000. They can make sure you clearly understand every stage of the process, how each product works and how they could impact the financial future of you and your family. It’s also worth mentioning that the value of houses typically increases over time and in this example, your home will probably be worth a lot more in 18 years than it is now – which could offset the final amount to be repaid. Learn what the other qualifying criteria are for equity release. Just like any mortgage or other form of borrowing, both the amount you initially borrow plus the accruing interest must be repaid at some point in the future. Helps you understand how much money could be left as an inheritance when your lifetime mortgage ends. Find out the maximum amount of money you could borrow with equity release. In addition, being regulated by the FCA means that consumers have adequate and appropriate protections in place. Lifetime lease Find out the maximum monthly income you could receive on this special type of lifetime mortgage. LEARN MORE. The product information on this website is provided to help you make an informed decision about whether our products are right for you. Plans allowing you to make ad-hoc voluntary payments which could help to manage the future balance. The UK equity release market is basically made up of two types of equity release plan. Is equity release safe? For example, most plans don’t require any repayments and, as such, you cannot get into arrears, default or have your home repossessed for non-payment. There are many benefits you could enjoy but, as with any financial product, you may be wondering how safe it is. If we don’t think equity release is right and a good option for you, we will say so. With business mobiles the cost will depend on your phone provider. We charge a simple fixed fee of £750, no matter the size of the loan. Equity release plans are regulated by the Financial Conduct Authority (FCA), and most providers are members of the Equity Release Council , a trade body that sets the standards and best practices for equity release companies and independent financial advisors. Drawdown is the most popular lifetime mortgage. Important: The loan amounts above are an illustration of the amount you could borrow. Always know how your balance will increase throughout the mortgage term. 5 by Feefo.com based on The facts and the myths. "It's a huge concern that is immediately put at ease". Income periods of between 10 - 25 years are available to meet your retirement income needs. Advisers must have taken special qualifications to become equity release advisers. The good news is that there are ways to mitigate this. You can do this via a number of policies which let you access – or 'release' – the equity (cash) tied up in your home, if you're 55+. Their primary role is to protect customers and enhance the financial market’s integrity. If the sum you want to borrow is small and you can meet repayments out of retirement income, it might be cheaper to take out an unsecured personal loan. View Cookies Policy. The downsides are that the inheritance you leave will be reduced and if you claim means-tested benefits, these could be affected. A SAFE (simple agreement for future equity) is an agreement between an investor and a company that provides rights to the investor for future equity in the company similar to a warrant, except without determining a specific price per share at the time of the initial investment. About Us. With lifetime mortgages, you always own your home and any increase in its value is yours. Equity Release Supermarket can provide a panel of qualified equity release solicitors to choose from, who can handle your application. This means that all lenders, brokers and advisers must have the permission (authorisation) of the FCA to lend and/or give financial advice. You can ask any questions and we’ll be able to let you know how much you could borrow. Once your plan has been in place for 5 years, you can repay it early without penalty if you sell your home and move to another property. If you choose to pay off your plan in full or in part, you can incur early repayment charges. The Equity Release Council was founded in 1991 to protect customers from malpractice. Key are authorised and regulated by the FCA, and we pride ourselves on ensuring all of our processes and recommendations are clear, fair and not misleading to our customers. Please read our Privacy Policy for further details. OneFamily Advice is the trading name of OneFamily Advice Limited. What is Equity Release? Releasing equity in your home is a major financial decision. If equity release isn’t right for you, we’ll tell you. There are several alternatives to equity release that may be more suitable, depending on your circumstances: Unsecured loans. As mentioned above, you must have at least one face to face meeting with an independent solicitor during the equity release process. These plans come with the following guarantees Anyone considering sourcing wealth from their property can rest assured that equity release is fully regulated by the Financial Conduct Authority. Click on the button below to complete a short form and we'll call you back within 30mins. Get more information on our website: https://www.keyadvice.co.uk/equity-release The actual amount may vary depending on your individual circumstances. Are equity release schemes regulated? Compassionate early repayment charges, allowing penalty-free repayment of a plan within three years of a partner dying or moving into long-term care. In addition, all FCA and ERC governed lifetime mortgages come with a no negative equity guarantee. Is Equity Release safe? Why not download our free ‘Is equity release safe?’ factsheet Because the FCA regulates equity release products, all advisors, brokers and lenders must get permission from the FCA to conduct their business. These include: Equity release is an advised financial product, which simply means that you cannot take out a plan without having taken appropriate financial advice from a suitably qualified professional. In many losing their homes your entitlement may be affected – the equity release Council a cash sum... Fca authorisation release products are right for you, we will only recommend mortgages! A cash lump sum payment release scheme involves selling a percentage of your equity release products are regulated the! The industry has also been overseen by its governing body – the equity release to find an adviser- in,! 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