Equity Release Safeguards 
Like many other homeowners, you may have heard or seen articles about equity release and feel a bit fearful of it, perhaps basing your fears on hearsay or even television programmes which focus only on old flawed equity release schemes.
If so, you may be denying yourself one of the few opportunities you have to supplement your pension tax efficiently and improve your retirement.
Since SHIP (Safe Home Income Plan organisation) was created in 1991 they have worked tirelessly to promote the development of safe equity release schemes.
All equity release scheme providers that are members of SHIP offer the following valuable safeguards:
- That you cannot lose your home regardless of what happens to the stock market, property prices or interest rates
- A ‘no negative equity’ guarantee, meaning that the loan plus interest would never exceed the value of your home
- The right to remain in your home for the rest of your life or as long as you choose
- The freedom to move to another property without financial penalty
- That your solicitor will explain to you all of the conditions of the loan and how they will affect you
- All companies must agree to provide a fair, simple and complete presentation of their plans
To further protect you, since October 2004, The Financial Services Authority has regulated the advice and sales of lifetime equity release mortgages, and this was further increased to include advice and sales of Home reversion Plans in April 2007.
However, all equity release products do involve borrowing against, or selling all or part of your home, and may work out more expensive in the long term than downsizing to a smaller property, and may affect your entitlement to State benefits and grants.
It is for this reason that we recommend that anyone considering taking out equity rive independent advice from a specialist like ourselves.
We hope this has help correct any misunderstandings you may have had and also overcome some of your fears and that would now like to investigate equity release for yourself. If so and you would like a free no obligation home consultation to discuss it further, then please contact us on would like to book an appointment to find out more about how equity release could benefit you, simply call us on 0118 958 8810, or complete our online enquiry form opposite and we will call you back as soon as possible.
Equity Release products are lifetime mortgages and home reversion plans. To understand the features and risks of lifetime mortgages and home reversion plans, ask for a personalised illustration.
To find out more about how equity release could work for you click here or to check to see just how much you could raise click here. Alternatively complete our online enquiry form and one of our consultants will call you back as soon as possible or call us on FREEPHONE 0800 970 4883 to discuss your requirements further.