How Safe Is Equity Release?

Equity Release is a lifetime mortgage or home reversion scheme. To understand the features and risks, ask for a personalised illustration.

In order to ensure you are fully protected, there are a number of safeguard in place for your peace of mind which we have detailed below.

Equity Release Council

We only recommend equity release schemes which are members of the Equality Release Council or companies that adhere to their standards and guarantees.

The Equity Release Council code of conduct states the following:

• All plans carry a 'no negative equity guarantee' meaning you will never owe more than the value of your home.
• The ERC Certficiate will clearly state the main cost to the householders assets and estate
• The client's legal work will be carried out by a solicitor of their choosing. The solicitor will be required to sign a certficiate confirming that the plan has been fully explained to their client and that they understand the benefits and risks.
• Clients will be provided with easy to understand presentations of their plans. This includes the benefits and limitations of the product along with any obligations the customer may have. It will include all costs to the client in setting up the plan as well as any tax implications and the effects of changes in home values.
• Clients have the right to remain in their property for life providing it remains their main residence.
• Clients have the right to move their plan to another property providing it's suitability without a financial penalty.

FCA

The Financial Conduct Authority (FCA) are regulators of the Lifetime Mortgage and Home Reversion Schemes. There are clear rules on how to treat customers fairly and there is a full complaints and compensation procedure in place. Equity Release Scotland is regulated by the FCA as are the lenders and providers which ensures that you are fully protected.

Things To Consider

It is important that you are aware and understand all of the implications before entering into an equity release scheme.

If you have any questions then please don't hesitate to get in touch. We'd be happy to anwser any questions you may have.