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Equity Release Council

Questions To Ask About Equity Release

By Equity Release

Equity release is a big step for any homeowner to take. If you are considering this scheme, it is important to find an option that is perfect for you. Before choosing an equity release plan, you should always use expert equity release advisors and find several questions to ask about equity release.

Essex Equity Release are Equity Release Council members. This ensures we offer unbiased advice and can offer plans that are approved by the council from a selection of providers. We can advise you on all the questions to ask about equity release before finding a suitable plan.

How Much Will It Cost?

For many homeowners, the first thought is often about how much money you will be receiving from an equity release plan. However, you should make sure you know exactly how much the equity release plan is going to cost you in the long-term.

Although some plans can fluctuate based on the interest that you have to pay on the plan, you can get a rough idea of exactly how much money you will have to pay. You will make your repayment after the plan ends. This is due to both you and your partner passing away or moving into long-term care before selling the house. If you sell your house earlier, you may have to make an early repayment which could be more expensive.

This makes it so important to consider all the options that come with equity release and exactly how much it could end up costing.

Are Plans Approved By The Equity Release Council?

If plans are not approved by the Equity Release Council, you should not consider them as a homeowner. Plans that are approved by the Equity Release Council will give you a much safer and more dependable option. This includes features such as:

  • Move Homes (Subject to Criteria)
  • No Negative Equity Guarantee
  • Remain in Your Home As Long As You Want
  • Ring-Fence Inheritance
  • Spend Money However You Like
  • Switch Plans (Subject to Criteria)

A No Negative Equity Guarantee means that you will never owe more than the value of your home. Therefore there is no debt after the equity plan ends. You should also find equity release advisors who are members of the Equity Release Council. This will ensure all plans made available are suitable for you and give you the financial freedom you want.

Can I Leave An Inheritance?

Although you may want extra funds right now for your own life, many homeowners want to leave an inheritance for their children and other beneficiaries. When selecting your equity release plan, leaving an inheritance should never be an issue. With many plans, once you sell your home, you should still have a lot leftover for children to inherit after the debt of equity release is paid off.

If you are still worrying about inheritance, you can choose an equity release plan with an inheritance protection guarantee. This allows you to protect a percentage of your home’s value so if the repayment you make is more expensive than you expect, you can still pass on your beneficiaries after the house sale, regardless of an outstanding loan.

What Equity Plan Is Best For Me?

Most importantly, if you decide to release equity, you should make sure the plan is perfect for your needs. This is why, instead of going to the providers of the equity plan, you should seek equity release advisors. This will ensure the advice you receive is based on which option is best for you. Going to a provider could mean finding the equity release plan right for them.

Advisors will also offer a recommendation based on your specifications and the criteria of each plan. Although you do not have to choose this plan, it will be one of your best options. We make sure you receive all the features you want from equity release.

Contact Us

For more information regarding questions to ask about equity release, contact Essex Equity Release today. You will receive a fast response from our team, organising a suitable time and location to offer equity consultation. Call us on 01268 799211 or fill in our contact form to make an enquiry.

How Has Equity Release Evolved?

By Equity Release

Equity release has significantly grown in popularity over the past 3 decades and is now a very sustainable and safe option for homeowners. There are several differences in equity schemes to when they were first made available and why they are now such a good option.

Essex Equity Release provide advice to all homeowners. We work with a number of providers to deliver the best schemes and plans for you.

What Was The Problem With Equity Release?

Equity release schemes have been available in the UK for over 30 years. Beginning in the 1980s, the products and schemes that were available caused problems for future development. The schemes that caused difficulties were home income plans. It was predicted the plans would bring significant reward for homeowners, as property value world increase and inflation would be higher than mortgage interest rates.

Homeowners were also advised to invest their money from equity release into stock market bonds. However, this produced poor results. As interest rates rose and property values fell, it left many homeowners to have growing debts due to equity release, rather than being a successful scheme to help homeowners.

Despite this, these schemes are no longer the same. Equity release is a much safer and more beneficial option for homeowners and will provide you with the financial security you desire.

Difference In Opinions

Due to the plans that were available in the 1980s and early 1990s, it meant there was no cap on interest accrued. Homeowners could end up owing everything from the sale of their home and having debt after that.

Nowadays, plans that have been approved by the Equity Release Council ensure there is a no negative equity guarantee. This means the repayment will never be larger than the value your property is sold for. There is never any debt for both homeowners and their children or family members, giving you complete peace of mind over the safety of equity release.

You will also have the option to protect any inheritance you want to leave from the equity release plan, along with leftover funds from the property sale.

How Has Equity Changed?

Equity has changed so there are now two types of popular equity schemes. These are lifetime mortgages and home reversions. Lifetime mortgages mean you do not have to make repayment whilst you are alive or living in your home. The interest will roll up and only has to be repaid when both you and your partner pass away or move into long-term care. This means the house can be sold before any repayment is needed.

Home reversions are slightly different, as you sell a part of your home. A lender will purchase a percentage of your home. When the property is sold, the lender will receive the value for the percentage of the property purchased. The payment you receive could be lower than market value for your home. When it comes to being sold, the lender could receive more money.

Equity Release Plans Today

As of 2017, £3.06bn was extracted from properties according to the Equity Release Council. Increasing by £909m in 2016, this demonstrates the growth in popularity and the reliability of using equity plans in the modern age.

Equity plans have also become more varied, giving you more options suited to all individual specifications. As equity continues to drop in price, you can find beneficial plans for your finances. Meanwhile, you do not have to spend too much money now or in the future.

Contact Us

For more information regarding equity and why this is a safe option for you, contact us today. Essex Equity Release will always provide a fast response, organising a suitable time to visit you at an ideal location. Organise a consultation today and call us on 01268 799211 or fill in our contact form to make an enquiry.

Why Use Members Of The Equity Release Council?

By Equity Release Council

Using members of the Equity Release Council is essential to ensure your equity plan gives you the guarantees you need. Without the Equity Release Council, you could be putting yourself at risk with an unreliable plan.

Essex Equity Release are members of the Equity Release Council. We will always offer unbiased advice as we try to find the best possible plan for your needs.

What Is The Equity Release Council?

The Equity Release Council (ERC), was originally launched in 1991. After equity release had been commonly mis-sold, the purpose of the council was to safeguard equity release products in order to help all homeowners who decided to use an equity plan.

Working with the UK government, the ERC has worked to make equity release a more reliable and mainstream product. Any members of the ERC will also follow their requirements for any equity release plan. This makes members a reliable option when you are considering equity release.

Choose Equity Release Council Members

With all equity release plans that come from equity release members, there are several guarantees you should receive which will end many of your worries. This includes a No Negative Equity Guarantee, ensuring the repayment you make once your house is sold never outweighs the amount of money your property is sold for. This ensures when your house is sold, you are never left in debt and not liable for any outstanding repayment.

Whilst some of the other features are subject to the criteria of the plan, you should also be able to move home in the future and continue with your monthly plan. You can also remain in your current home as long as necessary and will have the choice between monthly payments and a final lump sum. Monthly payments will never be a necessity with any plan.

Guarantees Of The Equity Release Council

When any company becomes a member, its equity release products must comply with the Statement of Principles. This will ensure that all customers are fully protected, regardless of the final equity release plan you choose. The Statement of Principles includes:

  • Ensure That All Their Actions Promote Public Confidence in Equity Release As A Potential Retirement Solution
  • Act At All Times in Utmost Good Faith
  • Communicate High Expectations for Equity Release Outcomes in All Their Dealings
  • Ensure Conflicts of Interest Are Managed Fairly and Reduced to the Lowest Practical Level
  • Exercise Due Skill, Care and Diligence In All That They Do
  • Uphold the Standards Set Out By Their Professional Bodies At All Times
  • Always Act With The Best Interests of Their Clients Being Paramount, Treating Customers Fairly In All Their Actions

All members of the Equity Release Council should comply with the Statement of Principles, ensuring all customers receive the best possible plan for their own needs. With both lifetime mortgages and home reversions available, it is important you choose a member of the Equity Release Council, so you have the best possible advice regarding every equity release plan.

Essex Equity Release ensure every client receives completely unbiased advice. As the plans we offer come from many different providers, you should have complete trust in our advice service. We will always find the best plan for your specific needs.

Contact Us

For more information regarding equity release plans or why you should use approved members, get in touch with Essex Equity Release. We will always provide the advice you require and can book a full consultation and appointment to discuss your needs. Make an enquiry and call us on 01268 799211 or fill in our contact form today.