As property prices have spiralled and peoples wealth increases, research by a leading actuarial firm has found that the majority of financial advisers believe that 'equity release' will become ever more popular.
What is equity release? Releasing value form your home by either selling a share of your home or mortgaging part of it. This releases capital to the owner but allows them to stay in the property until the day they die or the value is gone (depending upon the terms).
Our view:
Back in the 80's and early 90's there were a number of schemes that received appalling press coverage and rightly so, with some people losing their homes. Equity release has come a long way since then and there are now many decent trusted schemes. However, there is still no real clear regulation on this type of scheme and no requirements for qualifications to advise in this market. Tighter regulation is needed.
Would you like a copy of our free fact sheet on Equity Release? Contact us.