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The Right Equity Release Advice
06/05/2010
The Right Equity Release advice.
It is a fact in recent years Equity Release schemes have become more popular, each year more and more over 55 year old homeowners consider this as a way of releasing some of the money tied up in their homes. With retirement income failing to meet the increased cost of living, savings struggling to produce a realistic return, a lot of retirees are looking to the biggest investment they have to supplement their income in retirement. Generally the biggest single investment is the family home; clients are in a position of being equity rich but cash poor.
This is where Equity Release can help. The reasons why people choose to take money from their property vary; every client’s situation is completely different and should be considered based on their current personal circumstances. Increasing income, repaying loans and credit cards, mortgage repayment, holidays, new car, helping the children out etc, are all justifiable reasons.
If this is an option, where do you go to obtain the right equity release advice? There are 3 main routes, direct from a provider, from a company operating with a panel of lenders or from an Independent Financial Advisor. There are around 6000 advisors licensed to sell equity release in the United Kingdom, they have passed the appropriate examinations to be able to conduct business in this area of financial planning. However the majority have very little experience and the FSA are very concerned about advisors dabbling in this complicated area of financial planning.
In our opinion independent financial advice is the best way of obtaining the right equity release advice. Independent financial advisors are able to choose from the whole of the market place when giving clients the advice required. All equity release providers will only now deal with advisors who have the relevant qualifications, however from a client’s point of view this should not be the only consideration. Can the advisor demonstrate the required knowledge and experience, an understanding of the market and the ability to recognise the clients’ requirements?
Clients should seek advice from advisors who specialise in this area of financial advice. With more companies moving towards telephone and web based financial advice in easier to understand areas of financial planning; this is an area where clients should insist on face to face advice in the comfort of their own home? Our belief is they should and where they wish to involve their family in the decision making process, this should be encouraged.
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