How to avoid any risk
Look for plans carrying the The Equity Release Council which is an industry body set up to promote safe equity release schemes. Companies who are members provide a number of guarantees, including: you will have the right to live in your property for life; the freedom to move to an alternative property without penalties; and that you will never owe more than the value of your home.
If the scheme’s income comes from an annuity, you’ll get a better rate the older you are.
If you are just retired, it may be worth waiting a few years before signing up to an equity release scheme in order to get a better deal.
Equally if you are very old or in poor health you should think carefully about schemes paying monthly incomes – you may not live long enough to get a decent return.
Equity Release refers to home reversion plans and lifetime mortgages. To understand the features and risks ask for a personalised illustration.
For Equity Release advice you can choose how we are paid, pay a fee of usually 0.5% of the loan amount or we can accept commission from the lender.