Before you get started you should consider some of these questions:
- Is your retirement income lower than you’d like it to be?
- Would you like to top it up to make your retirement more comfortable?
- Do you want to release cash for a special reason?
Before you decide to take things further, you should bear some things in mind. For example, there might be more appropriate, ways to raise money than equity release.
There are two types of equity release scheme available in the market, with several variations on each.
- The lifetime mortgage involves taking out a new loan secured on your property.
- The home reversion plan involves selling a share of ownership of your property.
Equity release schemes such as home reversion plans and lifetime mortgages are regulated by the UK Government’s Financial Conduct Authority (FCA) – which offers those seeking to release equity from their homes, considerable protection.
Taking out any equity release product is a major decision that will have bearing on the rest of your life. You should always seek the guidance of an independent financial adviser who is regulated by the FCA, to confirm that equity release is the appropriate solution to meet your financial needs.
If you’d like to do some more research before talking to a financial adviser, the following organisations have information on equity release for you to read.
If you’d like to do discover the equity release providers, which are members of the Equity Release Council, and their products, before talking to your financial adviser, the following list will help.