What is Equity Release?
Equity release is a way of unlocking some of the value of your property without the need to move. The maximum amount of equity you are able to release depends on your age and the value of your property. However, if equity release is suitable for you, one of our specialist equity release advisers will help you to decide what you actually need, rather than just looking at the maximum available.
Equity release is regulated by the Financial Services Authority (FSA). In addition, members of the Equity Release Council (ERC) have agreed to adhere to a code of conduct which provides additional protection to consumers. Accordingly we at Better Retirement only recommend equity release plans that meet all of the ERC code of conduct guarantees.
To find out more about the FSA, please visit the How are you protected? section of this website.
There are three different types of equity release available:
- Lifetime Mortgage
- Home Reversion Plan
- Interest Only Mortgage
Please see our example case studies for how equity release may be used but remember that there are many other ways that equity release may be able to help you.
You must remember that equity release may reduce the value of your estate, which will impact on the amount of inheritance you are able to leave, and that future property prices may be higher or lower than they are currently.
Releasing some money from your property may also impact on your entitlement to means-tested state benefits and it may alter your tax position.
Most equity release plans have an early repayment penalty so you could incur charges should you wish to pay off a plan before your death or make a move into long term care.
We recommend that you discuss your plans with your family and that, with the help of one of our advisers, you consider the alternatives to equity release.
Annuities at a tipping point - Billy Burrows looks at the case for investment-linked annuities
Low annuity rates must prompt pensions rethink - BBC Website
An annuity is a serious business - Billy Burrows writes for Bestinvest
MGM Advantage sold to TDR Capital - Posted by Billy Burrows
How to make the most of your annuity - ABI Code - By Teresa Hunter in the Telegraph
It's about more than just price shopping - Billy Burrows - Financial Adviser
Annuity Update - February 2013 - Billy Burrows
Pensions: Annuity sales to be investigated by FSA - BBC website
FSA to investigate pensions annuity market amid fears - Julian Knight - The Independent
Annuity rates 'to rise by 25pc' - Richard Evans - Telegraph