Disclosure
Equity Release Ethics 2025: What You Should Know
Ethical considerations in equity release involve ensuring full transparency, understanding the impact on inheritance, and the long-term effects on the homeowner's financial situation.
What Are the Ethical Considerations in Equity Release? Find Out How Providers Are Regulated, Who the Regulating Bodies Are & What Ethical Guidelines Are in Place. Keep Reading...
This article contains tops tips from our experts, backed by in-depth research.
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Key Takeaways
- Equity release provides seniors with tax-free cash from their property but can reduce the amount left to their heirs and may affect eligibility for means-tested benefits.
- It may reduce the inheritance you leave your loved ones as the loan and any accrued interest is repaid from the sale of your home when you pass away or move into long-term care.
- The main risks include reduced inheritance, potential impact on means-tested benefits, and the possibility of negative equity if property prices fall.
- It can affect your pension if the released funds increase your savings and affect your eligibility for Pension Credit or other means-tested benefits.
- It can be a safe option for seniors if you take advice from a regulated financial adviser, choose a plan from a member of the equity release Council, and consider all the advantages and disadvantages carefully.
It's easy for equity release ethics to be overlooked - isn't that the case when it comes to a lot of financial matters?
However, that shouldn't be the case.
The equity release market is growing fast and, to an extent, the stigma from past years remains.
In This Article, You Will Discover:
As equity release experts, we've delved into how ethics have a central and pivotal role to play in the market and the ongoing changes made to improve standards.
Let's find out now!