Why Get Equity Release Advice?
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Why must one get equity release advice? Older homeowners are required to get professional financial advice before unlocking equity.
Furthermore, an adviser will help the borrower to find the best plan type and deal to suit their needs.
Equity release is a massive industry in the UK in May 2022, making it overwhelming for professionals, let alone individuals with little business knowledge.
Without expert advice, you could end up missing out on incredible equity release opportunities.
In this article, we’ll cover:
- A basic introduction to equity release.
- Why it’s essential to get equity release advice.
- What an adviser can do for you.
At SovereignBoss, we’re proud to have an expert team who spend countless hours keeping up-to-date on the equity release industry.
Let’s take a look at equity release advice is essential in May 2022 right now!
What’s Equity Release?
Equity release is a range of financial products that let older homeowners access the equity (cash) tied into their homes.
The money can be unlocked as a lump sum, in several smaller amounts, or as a combination of both.
You will work alongside a financial adviser who will answer all your questions on what is equity release and how it all works in May 2022.
What Are the 5 Reasons to Seek Equity Release Advice?
The 5 main reasons to seek equity release advice are to have someone sort through the huge variety of products, to save money, to combat high costs, to protect your heirs’ inheritance, and to discover if equity release is right for you.
1. There’s a Huge Variety of Products Available
Yes, there are numerous equity release products available to unlock through regulated lenders. You must select a lender who’s a member of the Equity Release Council.
They all offer special deals, including varied interest rates and policies. In addition, you might qualify for some plans and policies, but not for others, due to:
- Your age
- State of health
- Property value.
Additionally, different types of equity release mortgages are available on the market, with the main ones being home reversion schemes and lifetime mortgages.
Finally, when unlocking equity from your home, sealed is one of the best equity release providers on the market.
2. Equity Release Advice Can Save You Money
Equity release advice can save you money. While you’re spending money on their services, a whole-market adviser will help you find the best deal, saving you in the long run.
Furthermore, your financial adviser will help you determine if equity release is a good idea.
3. The Cost of Equity Release Can Be High
Equity release costs can be high depending on the interest rate. It can cost you between £1,500 and £3,000, plus interest rates.
Luckily, equity release interest rates are currently at an all-time low.
The Equity Release Council’s ‘no negative equity guarantee’ means that your family will never owe more than the value of your home.
However, you still don’t want to be left paying more than you need to.
4. Protect Your Family’s Inheritance
A financial adviser will help you protect your family with equity release.
They can assist you in finding a plan that can set aside some of your estate for your heirs, known as an inheritance protection guarantee.
5. Equity Release May Not Be Suitable for You
Equity release isn’t suitable for everyone. Therefore, it’s essential to consult with a financial adviser before making any concrete decisions.
If you’re still unsure or you’ve decided that equity release is the best course of action, your first step is to get in touch with a financial adviser.
You will be working with this person closely, so ensure that you find someone you trust.
You can look online for advisers in your area or ask for recommendations from family or friends.
It’s perfectly acceptable to shop around and meet with a couple of advisers before finding your go-to person.
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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.