Why Get Equity Release Advice?

5 Reasons You Should Seek Equity Release Advice in Dec 2021

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

Are You Wondering if You Should Get Advice on Taking Out an Equity Release Plan? Discover if It's Important. We've Got All the Details Right Here!

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Why Get Equity Release Advice?

Why must one get equity release advice? Older homeowners are required to get professional financial advise 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 Dec 2021, 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 Dec 2021 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.

Learn More: What’s Equity Release & How Does It Work in Dec 2021

What Are the 5 Reasons to Seek Equity Release Advice?

The 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.

Learn aboutThe Top Equity Release Providers on the Market

It Allows You to Find the Perfect Plan

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.

Find Out: Is Equity Release 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.

It Allows You to Claim and Keep Your Means-Tested Benefits

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.

Find out more: Can you protect your inheritance with equity release?

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.

In Conclusion 

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.

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.
francis

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

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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