If you’re over the age of 55 and own a home, equity release is a valuable tool you can use to save up for retirement, buy a second home, or offer your children an early inheritance. But before you take this step, you should seek equity release advice from a qualified advisor.
How to Find a Great Equity Release Advisor
Equity release can protect your family inheritance and save you money, but that doesn’t mean it’s suitable for you. That’s why you need a great advisor to explain your equity release options.
Look for an Advisor Who Offers a Free Initial Appointment
A good equity release advisor will offer a free initial, no-obligation consultation to see whether you qualify for a home reversion plan or lifetime mortgage. After all, you won’t want to spend your hard-earned money on an advisor only to realize an equity release isn’t worth the cost.
UK residents can go to Responsible Equity Release to find advisors that can work around their schedule. To make the most out of your appointment, make sure to ask a lot of questions.
Search for an Experienced, Highly-Regarded Advisor
To become an equity release advisor in the UK, you need to get a CeRER or a CeMAP. The certification doesn’t expire. However, the financial industry is constantly changing, so these professionals should keep up to date with annual changes and the latest mortgage regulations.
Being certified isn’t enough; your advisor also has to be experienced, and FCA regulated. You can check their authorization and experience online by researching their website and reviews.
Find an Advisor Who Can Answer Mandatory Questions
How do you know if your advisor is offering you the best advice? Unfortunately, you won’t know unless you know a thing or two about equity release products. Before meeting with your advisor, look up the different types of equity release, their costs, and their benefits and disadvantages.
When you’re equipped with this knowledge, you’ll know what to ask your advisor when you meet them. This Money Release article can help you come up with questions for your initial meeting.
Speak to an Advisor That’s Whole of Market Independent
When an equity release advisor is "whole of market" and independent, it means they can access all equity release plans available from providers. If they aren’t “whole of market,” your advisor may hold bias or push a small range of products that may not work for your needs.
In the UK, check if the advice specialist endorses SHIP plans or plans that carry the same guarantees. This ensures you won’t pay more than the cost of your property or lose your home.
Ask If You Can Involve Your Family and Meet in Person
Making the decision to release cash from your home is difficult, so ask your advisor if you can bring your family and meet in person. Unfortunately, some advisors may try to prey on the elderly by making the discussion private or brief. Avoid these “professionals” at all costs.
If you can’t meet in person or bring your family in for the appointment, request a Zoom call. At this point, most professionals should have the infrastructure to set up video chat or live chat.
See if the Advisor is Willing to Explore Other Alternatives
An honest advisor will look out for your best interests and would rather lose a client than lock them into a decision they’ll regret. If your advisor won’t explore other alternatives to equity release, like moving, traditional lending, and refinancing, be suspicious of their intentions.
At the end of your consultation, you should feel confident equity release is the right option for you and your family. Only work with an advisor if you’re sure they’re on your side.
