Considering equity release but don’t know where to start? Well, your first step is to get leading advice and a sound equity release quote. But you’re probably wondering where to get equity release advice in 2022?
Jason Stubbs from EveryInvestor is here to guide you through the equity release process, offering insight into the world of equity release and where to find leading advice.
Here’s what he has to say.
What is Equity Release?
If you haven’t heard by now, equity release is a loan against your primary residence designed for homeowners over the age of 55. There are two main types of equity release, a lifetime mortgage and a home reversion. In both cases, you can opt for a lump sum, placing the cash in a drawdown, or receiving a monthly salary.
With the less common form of equity release, the home reversion scheme, all or some of your property is sold to the lender below market value. They’ll receive their share of the property when it’s sold. This will occur when the last homeowner passes away or relocates to permanent care.
The lifetime mortgage is the most popular retirement mortgage option in the UK. With this series of plans, you’re offered tax-free cash against the value of your home, but your property still remains 100% yours. This loan comes with compound interest, which you can choose to pay off or leave to accumulate. Furthermore, you have the option to pay off some of the loan annually. Whether you pass on or move to care, whatever’s still owed will be covered from your property sale.
Getting Advice Online
While equity release is a brilliant financial opportunity, it does come with its pitfalls. As the homeowner, it’s up to you to do detailed research before embarking on your equity release journey.
Your first step is to consult a leading equity release website, like EveryInvestor, to find the best equity release news. Here you can find the latest industry updates, the pros and cons of equity release, and where to get the best equity release advice.
However, note that you can’t rely entirely on such websites for equity release support, as part of the equity release process is seeking professional financial advice.
Getting the Best Equity Release Advice
Your equity release adviser will guide you through the entire process, but where do you find an adviser? You have two options, a direct provider or an independent adviser. Here’s the difference:
A direct provider is an equity release lender that offers in-house advice. Most top equity release lenders offer these services, and many even give free advice. The limitations of opting for a direct provider are that they will only advise on the plans they offer, not the industry as a whole.
Independent Financial Adviser
On the other hand, an independent financial adviser will offer you equity release advice, focusing on the whole market. While you will pay for this advice, these lenders will help you find the best deal on the market. You must find a financial adviser that specialises in equity release and ensure that it’s someone you trust.
There are tons of brilliant advisers in the UK, so researching online or reviewing the options on the EveryInvestor website will help you find someone in your area.
Now that you know where to get equity release advice in 2022, you’re one step away from unlocking the key to your dreams. Equity release is truly life-changing, and with plans more flexible than ever, now’s the best time to unlock the key to your financial freedom during retirement.
If you own a home in the UK valued at a minimum of £70,000 and are over 55 years old, equity release could be your ideal financial solution. Not only will your adviser discuss equity release, but they’ll also talk you through all your alternatives, helping you plan for your future.