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Equity Release Advice

 

Mike Oliver is a certified member of the Equity Release Council

Equity Release Council Consumer Brochure

Equity release can play a major role in helping older homeowners maximise their retirement income.  The equity release options available now are particularly useful, given that you have to take account of low annuity rates, the erosion of savings and poor interest rates. We need to stress that Equity Release should only be used once all other methods of raising finance have been exhausted.

Discover how equity release works, and how it could work for you. Here are five quick facts about equity release plans:

  • Equity release is safe – the equity release market has been fully regulated by the Financial Conduct Authority (formerly the Financial Services Authority) since 2007.
  • Equity release is flexible – today’s products are designed to support customers in different situations, with a range of different incomes.
  • You can’t lose your home – All Equity Release Council (ERC) member providers include guarantees in their equity release plans that let you stay in your own home for the rest of your life.
  • Your children won’t be saddled with any debt – ERC approved equity release plans from providers come with a ‘no negative equity’ guarantee to prevent you owing more than the value of your home.
  • You can move house – As long as your new property meets the equity release provider criteria, you can take your plan with you to another property.

We can help you to discover what you need to know about the different types of equity release products, and how you can access and extract from the value of your property.

‘Equity Release’ includes home reversion plans and lifetime mortgages.  To understand the features and risks, ask for a personalised  illustration. 

For Equity release we charge a fee of at least £600. We will also be paid a procuration fee from the mortgage provider, if one is available.

Lifetime mortgages can quickly erode the remaining equity and as a result, there may be no value left to pass on.

Equity Release schemes may work out more expensive than alternatives such as downsizing to a smaller property.

Equity Release can affect eligibility for state benefits and grants, so always check this with an IFA who is qualified to give Equity Release Advice.

Equity Release can limit a customer’s options for moving house in later years.

One type of equity release is a lifetime mortgage, where every year interest is added to the amount you owe.  This will reduce the remaining equity in your home.  If you live a long time or house prices fall, there may be no equity left for your heirs to inherit.

Mike Oliver Associates do not arrange ‘Home reversion Schemes’.

Lifetime mortgages are complex products. To understand the features and risks, ask for a personalized illustration.

Mike Oliver is a certified member of the Equity Release Council

The Money Advice Service – Equity Release Schemes

Advice from the Money Advice Service about Equity Release

About The Equity Release Council:

The Equity Release Council has been operating for over 25 years and is the industry body for the equity release sector, which represents over 400 members including providers, qualified financial advisers, solicitors, surveyors and other industry professionals.

It works to ensure a safe equity release market for consumers, by operating rigorous Standards for the provision of advice and products which guarantee security of tenure and financial protections. 2016 marks the 25th anniversary since the first industry Standards were created for equity release in 1991. Since then, over 350,000 consumers have taken out an equity release plan from Council members, drawing on almost £17bn of housing wealth.

The Council also works with consumers, industry and policy makers to improve awareness and understanding of equity release and the potential for housing wealth to help solve many of the financial challenges facing people over the age of 55 across the UK.