How safe is equity release?

If you are looking to make some home improvements, help your family out, take that once in a lifetime holiday or simply live a more comfortable retirement  and a homeowner aged 55 or over then releasing some of the equity from your home could be the answer to helping your finances go that little bit further.

So how safe is Equity Release? 

Added Protection

In the UK, equity release is regulated by the Financial Conduct Authority (FCA), whose aim is to ensure protection for consumers, enhance market integrity and promote effective competition. Lifelink are directly authorised and regulated by the FCA, all of our advisers are fully qualified to give advice as an additional comfort Lifelink are also members of the Equity Release Council (ERC) and adhere to its high standards of conduct. The plans we recommend meet the Equity Release Council standards and include the no-negative equity guarantee, so you or your dependents will never end up owing more than the value of your property.

What are some of the potential downsides of equity release?

As with all financial products here are some risks and disadvantages to be aware of when it comes to equity release mortgages.

If you choose not to pay the monthly interest charged this will be added to your outstanding debt and interest is charged on the total outstanding balance greatly increasing the overall amount owed, this in turn will reduce the value of your estate.

By taking a lump sum Equity release mortgage it may also affect your entitlement to means-tested benefits now or at any time in the future.

Lifetime mortgages are designed to last the rest of your life and not be repaid, if at any point you wish to pay it off earlier than planned, you will probably incur early exit charges.

At Lifelink our advisers will take your personal circumstances and needs into account before researching the whole of market, your adviser will then give you a personalised recommendation, They’ll also let you know if equity release isn’t the correct option for you.

If you are interested in finding out if an Equity Release mortgage is right for you call Lifelink on 01189 349800 and speak to one of our expert advisers, and receive your free consultation, no fees are payable unless you decide to proceed.