Get the best financial advice for home equity release funding before settling with an institution.

What Is a Whole of Market Adviser?

There are two kinds of financial advisors — a whole of market advisor and an independent financial advisor.

Whole restricted to advisors are restricted to advising on particular products. They do not cover all institutions.

Independent financial advisors (IFAs) are free to advise a client on all products available to them across the board.

Either one of the two types of financial advisors will be able to advise you on home equity loans in the UK if you are considering equity release in the future.

When Would You Need a Financial Advisor?

If you’ve considered equity release, seek out the advice of someone who understands the pros and cons of the market.

Here are six reasons why a financial advisor would be best:

  • Find the right mortgage. With over 400 available, it can be complicated to research on your own.
  • Ensure that equity release is the correct financial route to take.
  • Get the best deals and value for your money.
  • Safeguard yourself against negative equity guarantee.
  • Stay informed of the impact equity release will have on your tax.
  • Make sure that your children’s inheritance is secure.

You may be able to cure existing debt and live once you retire, but with a whole of market financial advisor, you could avoid unnecessary fees and loss of property.

Where Can You Get High-Quality Equity Release Advice?

Equity release can depreciate the value of your property and disqualify you for means-tested state benefits. You want an advisor registered member of the ERC (Equity Release Council) to avoid being ripped off.

An advisor will tell you the costs and let you know about the fees from the best institutions.

They can also advise you on the amount you should release even if you qualify for more.

An independent advisor will have more information to share, but a whole market advisor will have a fee guideline to follow. The one may be more affordable, but the other is more knowledgeable.

To clarify all your options, Jason Stubbs, an expert in the equity release area, covers a wide range of information vital for newcomers to the equity release system.

Who Is Best Suited For Equity Release?

Anyone from the age of 55 and up can qualify for equity release. You can even apply for joint equity for you and a partner.

You and your partner would have to be permanent residents of the UK and be the primary residents of the property or home.

For a home reversion plan, you and your partner will need to be 65 years of age. A lifetime mortgage has a minimum requirement of 55 years.

If one of you passes on, the funds and interest will remain under the name of the living partner and won’t affect inheritance or tax.

If both partners pass on, the debt will need to be paid in 12 months by any financial means. Whoever inherits the property will be responsible for this.

If the equity were a home reversion, the balance would be given to the direct inheritance after the release is paid in full.

Why Should You Consider Equity Release?

If you want to unlock tax-free cash and live comfortably during your retirement years, this is for you. Settle outstanding debt and ensure an income after retirement can be easy with a home equity release.

Equity release can also cover home improvements, a long-awaited vacation, or a stable monthly income after retirement. There are no limits for its uses once you qualify.

Scholarships can also be hard to come by, and being able to help with university fees can be a grand gift to give your grandchildren by assisting them in avoiding debt in their early years.

Moving Forward

Your first step is to contact the Equity Release Council to find out about their registered members. Once you have consulted with the kind of advisor you would like to use, you can move on to a lender.

Some lenders are independent, so check that the FCA (Financial Conduct Authority) approves of them advising potential clients.

You can then have a solicitor evaluate your property or home and get all the quotes you will need before you consider signing for a home equity release.