is equity release safe

The SAFE investor receives the futures shares when a priced round of investment or liquidity event occurs. Plans allowing you to make ad-hoc voluntary payments which could help to manage the future balance. View Cookies Policy. Safe Equity Release since 1991. 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. However if you are prepared to look at Equity Release, then be assured that there are many Safeguards and Guarantees in place to protect you. As mentioned above, you must have at least one face to face meeting with an independent solicitor during the equity release process. The downsides are that the inheritance you leave will be reduced and if you claim means-tested benefits, these could be affected. The product information on this website is provided to help you make an informed decision about whether our products are right for you. Learn how these lifetime mortgages work. Plus, all equity release plans come with a no negative equity guarantee. Always know how your balance will increase throughout the mortgage term. About Us. Equity release is just like any other mortgage, in that the sum borrowed must be repaid with interest at a future date. Are equity release schemes regulated? Find out the maximum amount of money you could borrow with equity release. Lifetime mortgages that allow you to release tax-free cash as a single lump sum payment. Equity release is a big financial decision. The choice of equity release products available has never been greater, with an increasing range of features to suit individual needs. Find out how much money you could potentially release with an interest-only lifetime mortgage. And as the loan increases so does their fee, even though the advice process stays the same. 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. This means that all lenders, brokers and advisers must have the permission (authorisation) of the FCA to lend and/or give financial advice. I don't recommend that you consider Equity Release until you have looked at all other possible options to raise funds. 6 Safeguards and Guarantees. Anyone considering sourcing wealth from their property can rest assured that equity release is fully regulated by the Financial Conduct Authority. to learn more about the protections that are in place that make equity release a safe way to borrow. Click on the button below to complete a short form and we'll call you back within 30mins. Income plans allow you to supplement your retirement income. They make monthly payments direct to your bank account to spend as you wish. The many alternative options available to you are discussed here. You can learn more about this in our article How much does equity release cost? Although this wasn’t always the case, all equity release products and practitioners are now regulated by the UKs financial services watchdog, the FCA. It earned a bad reputation due to the debt complications which arose between the 1980s-1990s which resulted in many losing their homes. is rated If you’re already in receipt of benefits, your entitlement may be affected. LEARN MORE. Like any of life’s big decisions, it’s only natural for you to have reservations about equity release. 5 by Feefo.com based on By providing your details you are giving us consent to contact you with Equity Release information. RIO Mortgages continue into retirement based on income and affordability. It’s important to talk to your adviser about any means-tested benefits you might be claiming as the sum you receive from equity release could have an impact on your entitlement. No lender, broker or adviser can operate in the UK without FCA authorisation. Learn about how they work and the range of flexible plans available. receive any more emails or calls from us at any time. Drawdown is the most popular lifetime mortgage. Retirement Solutions are members of the Equity Release Council, the industry body for the UK Equity Release sector. 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. 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 plans are designed to last a lifetime, which means that as the years pass, the market evolves and changes. This can give them support when it’s possibly more beneficial and they are most able to enjoy it or put it to good use. Is equity release safe? Why not find out how much money you could release with our equity release calculator? You must receive financial and legal advice. The most popular plan is a lifetime mortgage - where the homeowner retains ownership of the property but the property is charged with the repayment of a loan or mortgage, which accrues rolled-up interest over the period of the homeowner's lifetime. The industry is now regulated by the Financial Conduct Authority (FCA), the financial services watchdog and regulator in the UK. If you’re not claiming benefits now, your future ability to claim benefits could be affected. 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. Equity release is much safer than it used to be. 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. Other providers often charge a percentage of the loan, meaning it’s not always obvious how much you’ll end up paying. Releasing equity in your home is a major financial decision. How safe is equity release? Is Equity Release Safe ? More details here. Fill in the form and one of our advisers will call you within 30 minutes between 9am – 6:30pm, Monday – Thursday and 10am – 2pm on Saturday. You are able to unsubscribe and so not receive any more emails from us at any time. 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. Find out how much equity you could release with our lifetime mortgage calculator and download your free guide to equity release for more information. OneFamily Advice is the trading name of OneFamily Advice Limited. Equity release can actually be used to gift your children, or grandchildren, an early ‘living’ inheritance. Learn more about the pros and cons of equity release, You must receive financial and legal advice, All products must have a ‘no negative equity guarantee’, All those taking out equity release must have at least one face-to-face meeting with an independent solicitor. We need your correct email address to send you your factsheet. Calls to freephone numbers are free from UK landlines and personal mobile phones. What are the Safeguards – Is Equity Release Safe? 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. 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. Any form of equity release is regulated by the Financial Conduct Authority (FCA). Learn what the other qualifying criteria are for equity release. Our OneFamily advisers are qualified, experienced and salaried – not working on commission. A flexible cash reserve allows you to receive money in smaller amounts. The Equity Release Council is the industry body for the equity release sector. Equity Release Supermarket can provide a panel of qualified equity release solicitors to choose from, who can handle your application. Plus, all equity release plans come with a no negative equity guarantee. That’s because, if you are claiming a number of benefits, borrowing a significant amount of money as a lump sum could take you above the eligibility limits. If you choose to repay your lifetime mortgage early. The ERC has a strict Code of Conduct which is designed to protect consumers and keep you financially safe. They must also ensure that you will never owe them more than the total sale price of your home, even if its value drops. The purpose of this site is to explain in simple terms how Equity Release works. Their primary role is to protect customers and enhance the financial market’s integrity. These plans come with the following guarantees There are several ways to find an adviser- in fact, OneFamily Advice offer a lifetime mortgage advice service with considerable benefits. Advisers must have taken special qualifications to become equity release advisers. The figures are not guaranteed and do not constitute an offer to lend. 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. We won't share your details with other companies. So while, equity release may or may not be right for you financially, dealing with a Ship provider means it should be safe. 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. Is equity release safe? This equity release scheme involves selling a percentage of your home. You must be over 55 and a homeowner. 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… For homeowners over 55 that want to access the money tied up in their home. There are several alternatives to equity release that may be more suitable, depending on your circumstances: Unsecured loans. Make ad-hoc repayments which can help manage your final balance to be repaid. The main drawback to equity release is that it will reduce the inheritance you leave your family. That all those taking out equity release have at least one face-to-face meeting with an independent solicitor. is a common question that I get. Get more information on our website: https://www.keyadvice.co.uk/equity-release These can help you manage the future balance of your lifetime mortgage by reducing the balance on which interest is charged. Our lifestyle calculator will advise how much you could release. Equity release plans run until the money is repaid, or until the last borrower moves into permanent long-term care or dies. Why not use our free calculator to understand the potential value of your estate when your plan is repaid? 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. In addition, being regulated by the FCA means that consumers have adequate and appropriate protections in place. Although equity release products are like traditional mortgages in several ways, there are some crucial differences that can benefit the customer. It’s always a good idea to talk through these with your equity release adviser but these include -. Equity release is a big decision, so it’s important that you have all the facts. Income periods of between 10 - 25 years are available to meet your retirement income needs. Means-Tested Benefits. This means you can repay a plan without penalty within three years of a partner dying or going into long-term care. We charge a simple fixed fee of £750, no matter the size of the loan. Calls may be recorded and monitored for training purposes. Is Equity Release Safe? 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. Understand what they are and how much you can borrow. Helps you understand how much money could be left as an inheritance when your lifetime mortgage ends. Read the OneFamily Privacy Notice. For many UK homeowners 55 and over, equity release is a useful way to supplement income, repay debts or make life easier for their loved ones. If we don’t think equity release is right and a good option for you, we will say so. 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. Is Equity Release safe? As the interest is compounded, then the total amount to be repaid could increase significantly over time. The facts and the myths. Equity release is safe as it’s regulated by the Financial Conduct Authority (FCA) and overseen by the Equity Release Council (ERC). With business mobiles the cost will depend on your phone provider. Learn more here. Equity release allows individuals aged 55 and over to release money from the property they live in without having to make any monthly repayments. Learn how home reversion schemes work here. Equity release is now safer than ever and progressively becoming a valuable tool for anyone aged over 55 who needs fast access to cash. 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. Alternatively, we can call you. There are protections and safeguards in place to ensure that equity release is safe. Find out the maximum monthly income you could receive on this special type of lifetime mortgage. That all products must have a ‘no negative equity guarantee’ – which means that your loved ones will never repay more than the value of your home. Many modern equity release plans offer features such as: This means you can’t get into arrears, or risk defaulting or having your home repossessed as a result. Equity release could present a few financial risks that you should be aware of. It’s a Financial Conduct Authority requirement that you get appropriate advice before taking out equity release. The actual amount may vary depending on your individual circumstances. Lifetime lease *Open Monday to Thursday 9am to 6:30pm, Friday 9am to 5pm and Saturday 10am to 2pm. What is the equity release process? Protecting your interests. 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 way equity is released these days is so much more flexible than it was only a couple of years ago, it can be structured just like a conventional mortgage if that’s what you want. This is an area of critical importance when you’re planning to release money from your home. By continuing to use the site you are agreeing to our use of cookies. Already have a lifetime mortgage? While they cannot give you financial advice, your solicitor will ensure that all your paperwork is in order and any legal pitfalls are avoided. Find out how much money you could save your estate by making ad-hoc payments to reduce your final balance. 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. 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 factors determine the size of your equity release loan. Health conditions could help you borrow more money. What does being regulated mean? We need your correct email address and telephone number so that we can answer your question. With lifetime mortgages, you always own your home and any increase in its value is yours. All equity release products are regulated by the Financial Conduct Authority (FCA) with all lenders being members of the Equity Release Council . The good news is that there are ways to mitigate this. Find out how much money you could release with a drawdown lifetime mortgage. All equity release products are regulated by the Financial Conduct Authority (FCA) with all lenders being members of the Equity Release Council. Learn all about equity release. Plans with fixed interest rates for life, meaning you'll always know how much you must repay in the future. Mortgages that continue into retirement based on income and affordability. In addition, all FCA and ERC governed lifetime mortgages come with a no negative equity guarantee. "It's a huge concern that is immediately put at ease". You could release money from your buy-to-let investment portfolio. Find out what’s involved and how long it takes. Lifetime mortgage where regular interest repayments help control the final balance to be repaid. Rest assured that all the Equity Release Supermarket’s advisers are listed as qualified members of the Equity Release Council. If equity release isn’t right for you, we’ll tell you. However, because the interest is compounded, the outstanding balance can increase significantly over time. Releasing equity is fully regulated by the Financial Conduct Authority, and we can offer further protection as we are a member of the Equity Release Council. Is Equity Release Safe? Learn how they work. The dangers of these schemes were that they didn’t offer the legal protections of modern-day plans. Equity release has come a long way since the plans of the 80s and 90s which were relatively unsafe. 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). There are though many ways that you can manage the balance, through the lifetime mortgage plan and the features you choose. Our friendly team of advisers are ready to help you, so why not spare a few minutes for a free initial consultation? Learn more about the pros and cons of equity release. Your solicitor will ensure all paperwork is in order and help you avoid any legal issues. 4.9 out of Find out what you could potentially save by switching to a new plan. With lifetime mortgages, you always own your home and any increase in its value is yours. As well as getting to know you and talking to you about your financial circumstances, your adviser will look at the whole equity release market and recommend the best product for you. Equity release offers safeguards that traditional mortgages don’t and it’s a good idea to understand what these are while you are thinking about taking out an equity release plan. Despite past concerns, equity release is now considered to be a safe and effective way of raising funds. Equity release is different from other forms of borrowing because you don’t have to make any monthly repayments unless you want to. 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. What is Equity Release? The most popular equity release scheme. Is equity release safe? Find out how much money you could borrow when taking out a lifetime mortgage against your buy-to-let property. There are many benefits you could enjoy but, as with any financial product, you may be wondering how safe it is. Learn how they work. 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