How safe is equity release?
As we mentioned above, equity release is regulated in the UK to protect you. The important protections offered by the Equity Release Council (ERC) are there to reassure you about taking out an equity release plan. In addition, apart from a few exceptional circumstances, anyone taking out a plan must take advice from an adviser registered with the Financial Conduct Authority (FCA).
When you come through Equity Release Wise to access your quotations and explore your options, you can rest assured that our selected advisers are all authorised by the FCA. Furthermore, they will only recommend you plans and providers from members of the ERC, so you won’t cross paths with any equity release companies to avoid.
For further peace of mind, our selected advisers encourage you to involve your family in the fact-finding and decision making process. By inviting them to be present for any appointments or telephone conversations, your loved ones can ask any questions of their own and have a better understanding of what is involved.
Equity release is not going to be right for everyone, so when you speak to an equity release adviser, they will honestly explain all the pros and cons of equity release to you. In addition, they will check you have considered the alternatives to equity release – such as downsizing – and will discuss your reasons for wanting the cash boost.
In addition to considering which equity release companies to avoid, you should also avoid anyone who suggests you arrange equity release to invest your money. No reputable adviser would recommend this due to the way in which interest accrues on a typical equity release plan.