What we cover in this guide
Why is it a good idea to include my family in my Equity Release decision?
Sometimes, family members will have worries about the outcomes of an Equity Release scheme. They might be concerned that your estate will be entirely swallowed up by the accumulated interest on the loan, that interest rates are too high or the advisor might not behave in an ethical way.
Most of these worries have no foundation. Equity Release is a clear financial decision to use a professional, commercial service in a well-regulated industry. Below are a few things that your family members might need to know when you are applying for Equity Release or please contact our team for more information.
Will my estate get completely eaten up by Equity Release?
Many years ago, in the early days of Equity Release products, there were some cases where the ‘rolled-up’ interest on the loan accrued so much that the final amount due to the provider exceeded the actual value of the property. This led to very upsetting situations where lenders were asking family members to cover the shortfall.
We are very happy to say that this no longer happens. Equity Release Council guidelines state that advisers must always recommend ‘no negative equity’ deals, and we have seen that products without this clause have now disappeared from the market.
We always look for schemes where nobody loses out. We can find Equity Release schemes that will take care of your needs and ambitions in later life, while still ring-fencing an amount to leave to the ones you love.
Are Equity Release advisers ethical professionals?
The industry is a lot better regulated than it once was, and an honest broker will never take advantage of a vulnerable individual or couple.
If your family still have concerns, they are welcome to sit in on our meetings, and we promise to answer any questions they may have. We are willing to work around their commitments, or we can answer any queries over the phone. If a broker does not offer this kind of service, it is probably best to steer clear.
The Equity Release council also lays down standards for the industry to protect your right to remain in your home, your right to move, to ensure interest rates are fixed and also that your estate will never go into negative equity.