If you are considering equity release, it is important for you to understand that you are making a serious financial decision that should be handled with the care and attention such a large decision deserves. You need to approach it in the right way if you want it to be rewarding and beneficial. So before applying for any equity release scheme, it is of utter importance that you seek equity release advice in the first instance.
The fact is that there are many equity release providers who want to have your business, so you want to make sure that you have sufficient information to make the right choice. Equity release is something that you will have to live with for the rest of your life so you need to understand the effects of this lifelong commitment.
You need to be able to look at your personal needs and circumstances and choose the provider whose equity release schemes best fit your needs and circumstances. This is not just at the present time but you need to consider your future situation also. For instance: are you likely to move and downsize, what is your health situation and are you expecting any potential windfall in the future?
When choosing an equity release adviser, it is important that you choose someone who is completely independent and is qualified and experienced in the field of equity release. They should hold the minimum equity release qualifications in order to be able to offer equity release advice.
You need someone who knows every corner of the equity release market and who can provide impartial advice. Most independent equity release advisers offer a free initial consultation. The reason for this is that they want to determine whether or not equity release is really for you. They will only proceed and start billing for other consultations if they have determined that equity release is the right option for you after the initial consultation. Interactive maps can help you to find a local adviser that will be willing to provide a FREE initial consultation and can be found online at companies such as www.equityreleasesupermarket.co.uk.
Each equity release provider has different lending requirements and it is only after discussing your situation & seeing your property type that your adviser can provide their expert opinion. Obtaining advice can make you aware of this and help you to avoid this by making sure that you meet all of the requirements to qualify for the equity release scheme.
One way an adviser might look at your situation is to have you fill out an application. They will at least ask some pertinent details about your life and home. You do not have to fill out the application or allow a credit report to be run initially. You can simply ask them to consider your situation and provide an answer of what product they feel would best fit you. It is one way to choose between the various providers available to you.
There are also tools online that you can use like equity release calculators, which take the same information and show you scenarios based on what you feel would be the best products. It is not 100% accurate to use the calculator since providers have different percentage rates and calculations; however, it would give you a basic idea of which scheme seems more plausible.
Equity release schemes are varied in form from selling a part of your home to retaining ownership, but gaining extra cash. It is up to you to get the information on all the products from your adviser and consider each of the options through merits and disadvantages that they have.
Home reversion might sit better with you even though you sell a bit of your home, than taking out a new mortgage due upon your death with compounding interest. This is why advisers can be of help. You also want to speak with your children once you have explored your various options. Your children have a right to know what choices you have made that could limit their inheritance, cause debt issues, or simply impact their memories of their childhood home.
These are all the right reasons why you need to make sure that you find an adviser who is qualified, experienced and knows the equity release market inside out. Remember this is not only a decision that will affect you, but also your children & children’s children, so gaining equity release advice you trust is paramount.