A good equity release adviser is essential if you are thinking of taking out a lifetime mortgage. You really want to have a fair and honest opinion as to whether this type of mortgage would be the right option for you. It’s true that equity release mortgages are becoming more and more popular. They can free up cash from your home, which you can spend on things that you want to do in your retirement or even relieve financial pressures. Consequently, there are a growing number of companies and advisers offering this type of product. And as with most things there are some unscrupulous people out there and so it’s good to be cautious. You do want to be dealing with an adviser who is looking out for you and has your interests at heart.
Advice on the mortgage that is most suited to your needs
In the latest blog from Paxton Equity Release, we look at things a good adviser will be doing and saying. We also look at the questions that you should be asking your adviser. It’s important that you take guidance from an independent financial adviser who has a specialist qualification. A good equity release adviser will be able to suggest the plan that is most suited to your requirements and also to tell you if equity release isn’t the best option for you.
A good equity release adviser should:
- Search the whole market to find the right plan for you
- Be on the Financial Conduct Authority register
- Be a member of and on the Equity Release Council Member Directory
- Help reduce the costs to you
- Protect your family’s inheritance
- Encourage you to discuss this with your family
- Advise if equity release is not for you
A dramatic rise in the number of products on the market
Searching the market is very important, as due to the rise in demand for this type of mortgage, the number of products has risen dramatically. At the beginning of 2019, the Equity Release Council listed over 220 products that are now available. This figure was almost double the number of products 12 months previously. It is therefore imperative that your adviser searches for the equity release mortgage, which is the most beneficial to your requirements.
Competitive interest rates and the lowest charges
Your adviser should be looking for the loan with the most competitive interest rates and the lowest charges. This could include finding a plan with no early repayment charges. This would mean that if you do want to downsize, you can pay off the loan without penalty. There are also mortgages where you can take out the equity when you need it, and not in one large lump sum.
Maximising the value of your estate
With an equity release mortgage, your home is usually sold to pay off the loan and so there will be less of your estate left after your death for your family. A good equity release adviser should explain how you can maximise the value of your estate. They will also definitely encourage you to discuss this with your family.
It’s really not the best option for you
A conscientious adviser will tell you if an equity release mortgage is not the best option for you. There may be other methods that would be more beneficial to you and your family. These could include downsizing, or other forms of borrowing such as remortgaging or getting help from your family.
Questions you should ask your adviser
- What their fees are?
- What type of equity release products they offer?
- Any other fees that are applicable such as legal, valuation and set up?
- Do they offer an after sales service?
Ask friends and family to recommend a good equity release adviser
With this market growing, it is vital to get the right adviser. Ask friends or family to recommend a good equity release adviser. Alternatively, check out their website and testimonials. An after sales service is helpful as sometimes a more suitable plan may become available and a good adviser will let you know if it does.
Can Paxton Equity Release help me to get a lifetime mortgage?
If you are looking for an adviser with a wealth of experience and a host of recommendations, please call Martin on 01892 617070 for a chat. You can also email email@example.com Martin will discuss your options, and if you are eligible and will let you know if an equity release mortgage is not the right choice for you.