In October 2004 equity release schemes will come under the regulation of the industry watchdog, the Financial Services Authority.
There has been continuing concern that only mortgage type equity release schemes will be regulated and not home reversion schemes. This is where you literally sell a portion of your home to the equity release company for a lump sum of money.
Many companies that would like to start offering home reversion schemes are not doing so because of the lack of regulation. At a meeting last week representatives from Age Concern, Help the Aged, the Association of British Insurers and the Consumers Association all called for regulation. They all agreed that advice for home reversion schemes should be mandatory and that being able to sell without it be outlawed.
Tip: The elderly can be vulnerable and what seems a good idea might not turn out to be in the long run. If you are considering equity release contact us for help. Visit the Help Zone now to find out about all the different ways we can offer advice.Free Factsheet:
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