Equity Release – friend or foe? – Karen Last

January 1, 2018 10:05 am

Equity release is a much-maligned subject. Sadly, older style equity release mortgages were not as clear and transparent as modern equivalents and they received some pretty damning press coverage.

The good news is that they are a heavily regulated product now, and only specially trained and authorised advisers can give advice in this field. The regulator takes a special interest in this market particularly as some clients are older and potentially more vulnerable. As a consequence, the whole process is tightly controlled and some providers will not even accept loan applications unless the client has received financial advice.

The bad news is that many people do not take independent advice when choosing their mortgage provider, relying instead on ads in newspapers and during the TV ad breaks! Consequently, they may not be getting the full story, as the best solution for them may not be available directly.

There are so many permutations for clients to consider, especially when taking into account tax implications, benefits, future care costs, disability issues, inheritance protection, wills, Powers of Attorney….and the list goes on.

The list of reasons one might consider equity release is endless…day to day bills, new car, holidays, home improvements, care costs, medical expenses, paying off debts or taxes (including maturing interest only mortgages), helping children, moving to a more expensive area and so on.

The best advice we can give is – take advice, especially from an experienced, impartial, honest and independent adviser.  Our first meeting is free of charge or obligation, so do contact me. I am very happy to meet at your home, and your family are welcome to join us.

Karen Last. 01473 730090. karen@claydens.com