Equity release plans have, for a long time, been poorly thought of by many members of the public. However, the industry and regulators have made a real effort to improve its image and ensure plans are as safe as possible.
The plans are regulated by the Financial Conduct Authority and many of the providers now belong to the Equity Release Council whose members have to follow its code of conduct. The code of conduct ensures that you, as a customer, is treated fairly.
What is Equity Release?
Equity Release plans come in two forms:
- Lifetime mortgages
- Home Reversion plans
The plans are secured against your home like a traditional mortgage, which means that your loved ones have obligation to any debts. There are also plans that offer ‘no negative equity guarantees’ which ensure you will never owe more than the value of your property.
It should be noted that Equity Release plans are not for everyone and more information on Equity release plans can be found in one of our previous blogs ‘Is Equity Release right for me?’.
In summary, Equity Release plans have improved and are safe as houses and becoming safer. They are also becoming more popular as proof of the growing confidence in the plans. If Equity Release is something you think you may be interested in, we have two qualified advisers who can advise you on the process. If you would like to contact them you can do so using the links below.