Lib Dems MP and Trade and Industry Spokesperson, Vincent Campbell, has called on the Government to introduce new rules for the regulation of Home Reversion Schemes.
Currently, there is no regulation or protection for elderly property owners who decide to release equity from their home.
Our view
As with any form of protection for consumers, we whole heartedly support the call. Investors get protection for life insurance, pensions and investment advice and will shortly receive the same (long overdue we might add) for Mortgage Arrangement and General Insurances such as household, motor and buildings.
There are many good equity release schemes available today, but there are also some not so good ones. The new Mortgage Regulation due for introduction in April will protect people who release equity via Mortgage Based Equity Release Schemes but as Home Reversion Equity Release Schemes are not mortgages, there will be no protection.
Learn more about the advantages and disadvantages of different types of Equity Release Scheme in our Equity Release Centre in Mortgage Crazy.com.
Free Fact Sheet - for registered users on Equity Release.
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