Blog > The role of financial advisers in equity release

The role of financial advisers in equity release


By Clare Yates • 27th April 2023 • 5 min read

What part do financial advisers have during equity release?

If you are thinking of joining the thousands of homeowners unlocking their property wealth every year, you’ll need to get specialist advice first.

An equity release adviser will explain everything you need to know, from how a plan works to current interest rates and of course the pitfalls of equity release.

To help you understand the role of financial advisers in equity release, we look five ways that the expert help of a professional adviser assists you when considering equity release:

  • Help to consider all your financial options
  • Explain the different plans and features
  • Find you the best equity release deal
  • Help you to protect your estate
  • Guide you through the process

How does equity release work?

Equity release enables homeowners aged 55 and over to unlock a tax-free cash lump sum from the value of your home. 

You can spend the money however you want to, once you first clear any outstanding mortgage on your home. There are typically no monthly repayments to make, unless you want to reduce the amount of interest that will otherwise roll-up.

When you pass away or move into long-term care, the money from the sale of your home will repay your loan plus interest.

Find out what’s possible for you: get a free quote or talk to one of our friendly consultants by calling 0808 178 3055 or request a call back.

What role does an equity release financial adviser play?

An equity release financial adviser is also known as an equity release adviser or specialist. They are financial advisers who have taken additional examinations that qualify them to advise on equity release products. 

This means holding a specialist qualification such as the Certificate in Regulated Equity Release (CeRER).

Here are five ways that an equity release adviser will assist you and help you make a decision about whether this form of lending is right for you:

1. Help to consider all your financial options

Equity release is typically a lifelong commitment, so getting the right advice and making the right decision for you is essential.

Importantly, your equity release financial adviser will explore the potential alternatives to equity release with you to ensure you are aware of all your other options. 

Equity release can be an expensive way to borrow money, so exploring your options could save you and your family money in the long run. Alternatives might include downsizing, taking out a short team loan or borrowing the money from family.

2. Explain the different plans and features

Equity release has come a long way in recent years and there are now many different options and plan features to choose from. An adviser can explain the difference between home reversion and a lifetime mortgage – the most popular type of plan today.

Your equity release financial adviser will help you understand how a plan works and the different options available to you. From lump sum and drawdown plans, to interest payment options. 

They can also check if your health or lifestyle entitles you to a higher cash release or a more competitive interest rate. Read about enhanced equity release plans here.

3. Find you the best equity release deal

After gathering your personal details, a key role of your equity release financial adviser will be to search for the best deal available to you. 

Your equity release interest rate is typically fixed for life on your plan, so getting the best deal possible can save you or your family a lot of interest in the long-term.

If you think you may want to pay off your equity release plan early one day, your adviser can look into options that can facilitate this. This might include a plan with fixed early repayment charges and downsizing protection.

In addition to finding the best deal, you’ll want to ensure you will never fall into negative equity and have the right to move home if you want to in the future. For this reason, make sure your equity release financial adviser only recommends plans with these guarantees from lenders approved by the Equity Release Council.

4. Help you to protect your estate

One of the drawbacks of equity release is that a plan will reduce the value of your estate and the amount of inheritance you leave. However, there are ways that you can reduce the impact of equity release interest on your estate. 

Your equity release adviser will explain interest-only plans to you, plus plans that allow you to make voluntary payments of up to 10% of your overall loan every year, penalty-free. Both of these options will likely mean that you leave a bigger inheritance. 

They will also talk you through plan options including inheritance protection. This enables you to ring-fence a percentage of your home’s value as a guaranteed inheritance for your family.

As part of your equity release adviser’s role in the process, they will also encourage you to talk openly with your family about your plans. Involving your family in the decision can prevent the need for difficult or awkward conversations later down the line.

5. Guide you through the process

The role of an equity release financial adviser doesn’t stop when you decide to go ahead with a plan. They’ll guide you through every step of the process from start to finish. This includes explaining everything to you and answering your questions, to helping you complete the necessary paperwork and even recommending an equity release solicitor

At Equity Release Wise, our friendly selected advisers pride themselves on the working relationships they build with customers. They will take the time to get to know you and your circumstances so they can do their best to ensure a smooth experience.

Arrange an appointment with an equity release adviser

If you’re looking at equity release, why not speak to our friendly team today? Call us on 0808 178 3055  or request a call back at a time that suits you and we will arrange an appointment with one of our selected advisers.

For peace of mind, any initial advice or information you receive from our selected advisers is completely free and without obligation. You will only pay them a fee if you apply for a plan and your case completes. This fee can be paid from the money you unlock, so you do not have to worry about finding it during the application process.

How can we help?

To find out more about equity release or arrange a consultation with an adviser, please call or request a call back and we’ll be happy to help further.

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