Contributors: Nicola Date, Katherine Read. Reviewed by Francis Hui

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13 Questions You MUST Ask Your Adviser

Have you finally settled on the right financial adviser to help you through the equity release process?

The million-pound question; what’s next? If you don’t go prepared for your appointment, you could miss out on golden opportunities.

Luckily, we’re here to help you prepare.

Through this article, you’ll discover:

  • Essential questions to ask your financial adviser.
  • How to get the most out of your appointment.
  • How to know, through your appointment, if equity release is the best move for you and your family.

Our expert team has spent hours consulting leading equity release financial advisers to bring you this accurate information. Find out more right now!

13 Essential Questions to Ask Your Equity Release Financial Adviser In Dec 2021

Meeting with a new professional can be intimidating, especially when the appointment is related to finances. But, don’t have fear.

Firstly, you can shop around for advisers. If you’re not comfortable with your first choice, don’t settle. You’ll be working closely with the person, so you must trust them.

Furthermore, preparing for a meeting is the best way to eradicate anxiety and get the most out of the experience. Now it’s time to get all the right information from your adviser. Ask these 13 essential questions:

1. Do You Advise on All Types of Equity Release?

There are 2 main types of equity release to ask about, a lifetime mortgage and a home reversion scheme.

In addition, if possible, find an adviser that works with residential mortgages, interest-only mortgages, and retirement interest-only mortgages. This way, they will know where to find the best deal and lowest interest rates.

Check Out: A Comprehensive Guide to Understanding Lifetime Mortgages in Dec 2021

2. What Are the Costs Associated With an Equity Release Plan?

There are some costs involved with equity release, including:

  • Application fees
  • Valuation fees
  • Legal fees
  • The cost of advice

You can use some of the equity you release to cover the costs involved.

3. Does the Equity Release Council Safeguard Me?

You MUST make sure that your financial adviser works with members of the Equity Release Council.

4. How Do You Choose the Right Plan For Me?

There are many different plans on the market, and what’s right for you will be determined by a range of factors, including:

  • Your age
  • Your spouse’s age
  • The value of your property
  • The condition of your property
  • The condition of your health
  • How much equity you want to release

Your adviser will help you find the best options for your requirements.

5. What Are My Alternatives to Equity Release?

Releasing equity from your home is a massive decision. Before you do so, be sure to ask your adviser about your other options.

Once you have considered all the alternatives, then you might find that equity release could, in fact, be the right decision for you.

6. How Do You Decide What Initial Advance, and What Reserve I Should Have?

An initial advance refers to the money you first receive, and a reserve facility is a pre-agreed amount of money that you will receive directly from the lender.

Take out the initial amount of money based on the expenses that you foresee. Set up a reserve facility for the remaining funds.

Note: You will pay interest on the first reserve.

7. What State Benefits Will I Lose With an Equity Release Plan?

With equity release, you may no longer qualify for state and means-tested benefits. You must ask your adviser about this so that you can make an informed decision.

8. How Much Can I Borrow on a RIO?

An alternative to equity release that’s worth considering is a retirement interest-only mortgage. RIO’s require monthly interest payments, unlike equity release. However, RIO interest rates are often significantly lower, meaning that you’ll leave a larger inheritance for your heirs.

The amount you can borrow is determined by your property value, your income, and expenditure. You can generally unlock 4 to 4.5 times your income, as long as it’s 80% of the value of your property.

Your financial adviser will be able to further advise you on an RIO.

9. What Are the Downsides to Taking Out Equity Release?

Like with all financial products, equity release does come with its risks. You must know all the pros and cons of equity release before making your final decision.

10. On Which Lenders Plans Do You Advise?

With numerous lenders on the market, ask your adviser to help you find the best possible plan for you. They will direct you towards everything you need to know about equity release.

Discover: The Best Equity Release Providers Currently on the Market

11. Will I Be Able to Have Other People Living With Me in the Future?

Ageing might bring the need for in-home care or family members moving in to assist. In fact, you might want to use the equity released from your home to cover professional care, rather than opting for a facility.

You need to check this with your provider to know all the facts before selecting an equity release plan. Some plans prohibit who can live with you once equity has been unlocked from your property.

INTERESTING READ: How Equity Release Can Help With Long-Term Care

12. Will the Provider Change the Terms/Interest Rate in the Future?

Your equity release plan should come with fixed interest rates and terms of use, but it’s always best to ask these questions so you know what you are getting into.

In The News: Why Equity Release Interest Rates Are Trending Down

13. What Happens if I Need More Money in the Future?

This is a great question!

Perhaps speak to your adviser about releasing equity in smaller increments to ensure that you are always liquid.

In Conclusion

By asking your adviser all these questions, you’ll certainly leave your appointment with peace of mind, knowing if equity release is best for you and your family. Furthermore, consider asking a trusted family member to join you to ensure that all bases are covered at your initial appointment.

Are you wondering how much cash could be tied into your estate? Try our accurate equity release calculator to find out right now.

Editorial Note: This content has been independently collected by the SovereignBoss advisor team and is offered on a non-advised basis. Sovereignboss may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations. Learn more about our editorial guidelines.

rachel w

Rachel Wait
Personal Finance Journalist

Rachel is an experienced finance journalist and editor with a particular interest in personal finance and consumer affairs. She has vast experience writing about money issues, property, insurance, and consumer affairs, and you’ll find her articles regularly featured in top media and newspaper publications.
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Written by
John Lawson
Founder SovereignBoss

John is passionate about education and has made it his life-long mission to assist UK citizens on their future financial options, with a specialist interest in equity release, and SovereignBoss is the natural extension of this passion.

Reviewed by
Francis Hui
Senior Risk Manager

Having held various high-level roles across the industry, Francis is truly an expert in aiding UK citizens in their financial decisions and risk analysis. His unique insight and statistical knowledge make him the perfect person to help you take your financial future to the next level.
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Katherine Read
Consumer Affairs Writer

Since joining the editorial team at SovereignBoss, Katherine has become focused on bringing transparency to finances and opportunities for those approaching retirement age. She writes on the topics of equity release, home reversion, and mortgages.

Nicola Date
Writer & Journalist

Nicola is a financial writer for SovereignBoss and is passionate about the opportunities that equity release can open up for homeowners. Her extensive business experience and deep understanding of the industry means that she’s always up-to-date with the latest developments.

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