finding an equity release adviser

Equity Release Adviser | March 2024

An equity release adviser is a professional who provides expert advice on equity release products. They provide homeowners with an understanding of the implications of such financial decisions, helping them to navigate through the complexities of equity release mortgages.

For anyone thinking about releasing equity from their home to secure a comfortable retirement or meet other financial needs, these advisers are important to speak with.

Topics that you will find covered on this page

Understanding the Role of an Equity Release Adviser

Equity release advisers provide homeowners with guidance on equity release, helping them understand how they can unlock the value tied up in their property.

These advisers assess the homeowner’s financial situation and explain how much equity can be released. On top of this, they also evaluate how it could affect their future inheritance.

Moreover, equity release advisers offer independent advice on equity release. They advise homeowners on various equity release products, such as lifetime mortgages and home reversion plans. They explain the benefits and drawbacks of different products to homeowners, helping them to make informed decisions.

The advisers also provide clarity on complex terms such as the negative equity guarantee.

This is an assurance that the homeowner will never be in debt of more than the value of their home, regardless of how much they release in equity.

Understanding such terms is vital to ensure that homeowners are not left in debt.

Lastly, advisers explain the impact of equity release on means-tested benefits. As some homeowners may lose entitlement to certain benefits if they release equity, an adviser will guarantee that the homeowner understands these implications.

Importance of a Qualified Equity Release Adviser

It is crucial to source a qualified equity release adviser. These advisers are regulated by the Financial Conduct Authority and are required to adhere to strict guidelines. This ensures that the advice given is in the best interests of the homeowner, and that the adviser acts ethically and professionally at all times.

A qualified adviser will conduct a thorough assessment of the financial circumstances of the homeowner. They will consider the homeowner’s age, health, property value and other factors to determine the  best equity release product for their specific needs.

They will also consider whether there are other financial options which may be more suitable for them.

It is preferable for an adviser to be a member of the Equity Release Council, as this demonstrates commitment to high industry standards.

Alternatively, consider an adviser’s overall qualifications and experience, as non-members may also offer suitable advice.

The advice from a qualified adviser is also unbiased. Independent equity release advisers are not tied to any lenders. Therefore, they can give advice on products from across the market and assess them in terms of their suitability for the homeowner’s needs.

When researching advisers, check their online reviews, as well as  asking for recommendations from friends or family who have used equity release. This can help to further assure you that the provider is offering a high quality service.

How to Choose the Right Equity Release Adviser

Choosing the right equity release adviser is important. Homeowners should look for advisers with experience and a thorough understanding of the market.

They should also look for advisers who can provide independent, non-lender informed advice on equity release.

It’s also important to choose an adviser who can clearly and comprehensively explain the costs involved in equity release. For example, interest rates, lender’s charges and any other potential fees involved. 

Homeowners should also consider the adviser’s communication style. It is important to choose an adviser who will understand their needs and explain complex information in a simple and straightforward manner. This allows the homeowner to make informed decisions regarding the process of equity release.

Moreover, check whether the adviser provides ongoing support after completion of the plan. Although not essential, this can be helpful if you need future guidance.

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Services Provided by Equity Release Advisers

Equity release advisers offer a wide range of services to homeowners. Firstly, they provide independent advice on equity release, supporting homeowners in understanding their options, as well as the benefits and drawbacks of different equity release products.

Advisers also help homeowners to understand the financial implications of releasing equity.

This is particularly in relation to how it could affect their future inheritance, their entitlement to means-tested benefits, and their ability to leave an estate. They also explain the implications of releasing a lump sum or monthly income from their property.

Furthermore, advisers help homeowners with the application process by liaising with lenders, helping fill out application forms and managing any potential issues that arise. This saves homeowners time and stress, ensuring that the process runs smoothly.

Navigating Equity Release Regulations in the UK

Equity release regulations in the UK are strict. The Financial Conduct Authority regulates equity release advisers, ensuring that they act ethically and in the homeowner’s best interests. These regulations also ensure that throughout the process, advisers provide clear and concise information.

Advisers must also adhere to the guidelines set out by the Equity Release Council. These guidelines ensure that advisers deliver a high standard of service, offer independent advice and treat homeowners fairly.

They also ensure that advisers make homeowners aware of the potential risks of equity release, such as its impact on future inheritance and means-tested benefits.

Furthermore, regulations ensure that equity release products come with a no negative equity guarantee. This means that, even if house prices fall, homeowners will never owe more than the value of their home.

This guarantee provides homeowners with the knowledge and peace of mind that they will not leave any debt for their family members.

Lastly, regulations ensure that homeowners have the right to live in their home for the rest of their life, or until they move into long-term care. This right is protected, guaranteeing that homeowners are able to reap the benefits of equity release without fearing for the loss of their home.

Speak To An Equity Release Advisor Or Use the Equity Release Calculator Below To Estimate How Much You Can Borrow

The UK Care Guide works in partnership with Boon Brokers, one of the UKs leading equity release specialists.

You can contact them on 0333 567 1607 , or use the equity release calculator to estimate how much you can borrow.

Here is what Boon Brokers Offer

Whole of market access
Over a decade of experience
Great customer service

5 star client testimonials, on Trustpilot, about Boon Broker’s support and hands-on service

Call Boon Brokers on 0333 567 1607 to discuss your equity release requirements.

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All equity release and mortgage advice is provided by Boon Brokers Limited, which is authorised and regulated by the Financial Conduct Authority (FCA). The Financial Services Register number is 973757. 

If you take out a product with Boon Brokers, we will receive a fee for introducing you to them. Boon Brokers provides advice for free and without obligation.  By contacting Boon Brokers through us, the cost of any equity release product would be the same as if you had contacted them directly.  

The fee we receive is used to help keep this site operational and to produce new content.  

Think carefully before securing other debts against your home. Your home or property may be repossessed if you do not keep up repayments on your mortgage.

equity release advice

The Equity Release Process and Adviser’s Involvement

Although the equity release process can be complex, an adviser can guide homeowners through each step. The first step is conducting a thorough assessment of the homeowner’s circumstances.

They will consider factors such as the homeowner’s age, health and property to determine the best equity release product.

Once the adviser has identified the most ideal product, they will support the homeowner with the application process through liaising with lenders, filling out application forms, and managing any issues that arise during the process. 

The adviser also provides a clear and comprehensive breakdown of the costs involved in equity release, explaining the interest rates, the lender’s charges, and any potential fees.

This ensures that the homeowner fully understands the financial commitment involved in equity release.

Charges and Fees of an Equity Release Adviser

Although adviser fees vary, they are typically around £1,500 to £2,000. Furthermore, some will charge a percentage of the amount released.

Consequently, it is important to ensure you receive a clear breakdown of all costs involved. It is also necessary to check whether the adviser gets commission from the lender, as this could influence recommendations.

In addition, homeowners should consider the value of the advice they receive.

Though costly, the advice from a qualified and experienced adviser can save homeowners money in the long term. They will support homeowners in avoiding costly mistakes, choosing the best product for their needs and managing the equity release process efficiently.

Potential Risks and How Advisers Can Help

Advisers can also help homeowners to understand and manage the risks associated with equity release. One risk is the impact on future inheritance.

By releasing equity, homeowners reduce the value of their estate, which may affect their family’s inheritance. Advisers can  offer support in considering ways to mitigate this.

Another risk is that some homeowners may lose their entitlement to certain benefits if they choose to release equity from their home. Advisers can help homeowners to understand these implications, as well as considering other financial options if necessary.

The cost of equity release is also a risk, as interest rates can be high and debt can build up quickly. To help mitigate this, advisers can help homeowners to choose a product with a competitive interest rate.

equity release advisers

Avoiding risk with advisers 

The best way to avoid risk with both lenders and advisers is to only work with those who are authorised by the Financial Conduct Authority. There is an industry body known as the Equity Release Council and all members must abide by certain rules of conduct.

This means that you will never be forced to make payments while you are still alive, you will always be able to remain living in your home, you can move your plan to another home, and you will never owe more than the value of your home.

As long as you make sure that your lender and your adviser are regulated by the Equity Release Council and on the FCA register, you should have the best chance possible at minimising risk with your equity release loan.

 

Best Equity Release Interest Rates as of 24 February 2024

The table below shows you some of the best equity release rates, as of 24 February 2024, for lifetime mortgages from some of the leading equity release providers in the UK. 

Provider NameProduct NameInterest RateType of productOffers
Standard LifeHorizon 200 Drawdown5.26%FixedFree Valuation
Standard LifeHorizon 200 Drawdown Fee Free5.31%FixedFree Valuation
No application fee
More2LifeCapital Choice Ultra Lite Drawdown 15.46%FixedFree Valuation
No application fee
LV=Drawdown Lifestyle DD15.58%FixedFree Valuation
No application fee
Scottish WidowsFR15.60%FixedCashback
Free Valuation
No application fee
Standard LifeHorizon 280 Drawdown5.60%FixedFree Valuation
Legal & GeneralInterest Roll-Up 15.61%FixedFree Valuation
Legal & GeneralOptional Payment 15.61%FixedFree Valuation
LV=Drawdown Lifestyle DD25.63%FixedFree Valuation
No application fee
Legal & GeneralInterest Roll-Up 1 (no fee)5.65%FixedFree Valuation
No application fee

The equity release rates have been sourced by UK Care Guide from the Equity Release Supermarket website. These rates may have changed since this table was created and should be taken as indicative only. There may be other providers not listed on this table that could offer better deals.  In addition, the providers and products noted may not be right for your particular circumstances.  Therefore, they should only be taken as a guide, and we cannot guarantee their current accuracy. Please also note that we do not provide advice on or endorse any particular product listed here. The rate you are offered will depend on your individual circumstances and subject to lender approval. Therefore, we strongly recommend that you speak to an equity release adviser, who will be able to provide you with information on the latest rates that apply to you.

Speak To An Equity Release Specialist Today

Call Boon Brokers on 0333 567 1607 to discuss your equity release requirements and see what deals are available to you.

Equity Release Alternatives to Discuss with Your Adviser

There are alternatives to equity release that homeowners should discuss with their adviser, one of these being downsizing their home. By selling their home and moving to a smaller property, homeowners could release a lump sum of cash. However, this option may not be suitable for everyone, particularly for those who want to stay in their own home.

Another alternative is taking out a traditional mortgage or a secured loan, which can still provide homeowners with the cash they need. However, they will need to make regular repayments, which could put a strain on their finances. This especially applies to those on a fixed income.

Lastly, homeowners may consider asking family members for a loan or a gift to help the homeowner meet their financial needs. However, to avoid disputes, ensure that this option is considered carefully.

Maintaining an Ongoing Relationship with Your Adviser

Maintaining an ongoing relationship with your adviser is beneficial, particularly because the equity release market is constantly changing. An adviser can keep homeowners updated on any changes relevant to their situation, as well as helping them to manage changes in their circumstances.

An ongoing relationship with an adviser also provides homeowners with peace of mind. They know that they have access to a professional, offering support with any questions surrounding the process. This is particularly valuable in the later stages of the equity release process, when homeowners might need more support.

Lastly, an ongoing relationship with an adviser can save homeowners time and stress. The adviser can help homeowners to enjoy the benefits of equity release, without the worry of managing the process on their own.

Role of a Lifetime Mortgage Adviser

When considering equity release products, a lifetime mortgage adviser plays a significant role. They provide homeowners with equity release mortgage advice which is specifically tailored to the lifetime mortgage option, helping them to decide if it is the right choice for them.

A lifetime mortgage adviser can explain how a lifetime mortgage allows homeowners to borrow a portion of their home’s value. The homeowner is able to keep ownership of the home without making any repayments, until they pass away or move into long-term care. The adviser can explain advantages of this, such as the ability to receive a cash lump sum.

An adviser can also explain the importance of considering interest rates. With a lifetime mortgage, interest that accumulates over time is repaid, alongside with the loan amount, when the homeowner passes away or moves into care. They can help homeowners to understand how to manage this, as well as being aware of the importance of choosing a product that offers a competitive interest rate.

equity release adviser

The Role of Equity Release Brokers

Like advisers, equity release brokers provide homeowners with independent financial advice, but they also have a broader role. Brokers search the market for the best equity release products, including those offered by alternative providers.

It is important to note that they are particularly beneficial for homeowners who are considering home improvements, or other large expenses. 

Brokers can recommend products that offer a cash lump sum, which can be used to fund such expenses. They can also explain how the repayment process works, helping homeowners to manage their financial commitments.

Like advisors, equity release brokers also assist with the application process by liaising with lenders, filling out application forms and managing any issues that arise. This service can save homeowners time and stress, ensuring that the equity release process runs smoothly.

Equity Release for Home Improvements

A common reason why homeowners proceed with equity release is to fund home improvements. Upgrading a kitchen, adding a conservatory, or installing energy-efficient measures can add substantial value to a home.

However, these improvements often require a substantial cash lump sum, meaning that equity release is a viable option. 

An equity release product, like a lifetime mortgage, allows homeowners to unlock a portion of their home’s value to fund these improvements. Homeowners can potentially increase its market value by making these improvements. This will benefit them if they decide to sell the property or leave a larger inheritance for their family.

Conversely, it is important to note that using equity release for home improvements can be suitable for some, yet the decision should not be taken lightly.

Remember to evaluate the costs versus the potential property value increase, as well as considering how it may reduce future inheritance. It is essential to source advice from a qualified professional.

Considering Other Providers

When considering equity release, it is crucial to explore options with other providers. Each lender offers different equity release products that have their own terms, interest rates, and benefits.

An equity release adviser or broker provides independent advice which can help homeowners to compare different products from various lenders.

Homeowners may find that some providers offer products that are more suitable to them than others. For instance, some lenders offer more flexible repayment options, allowing homeowners to make voluntary payments to manage the accumulated interest.

Alternatively, others offer a larger cash lump sum. This could be beneficial for homeowners needing a significant amount of money in the short term, funding expenses such as home improvements or other large expenses.

Finally, it’s essential to remember that although other providers may offer attractive deals, homeowners should always consider the long-term implications.

The age, health, property value and future plans of the homeowner should all be taken into account. Remember that a qualified adviser can provide guidance on making a decision that is in the best interests of the homeowner.

equity release financial advisors

Means tested benefits

It is important to be aware of the impact that equity release can have on your entitlement to means tested benefits. You will always be entitled to your state pension, but benefits such as pension credit, jobseeker’s allowance, universal credit, and council tax support, to name just a few, may all be affected.

Speaking to an equity release adviser will help you be more aware of these sorts of risks before you take out an equity release plan. They can help you decide whether or not it will be the best option for you in the long term.

Can I move home if I have equity release?

With certain lifetime mortgages, it is possible to move home and transfer the mortgage at a later date. However, depending on the product you choose, this may be more or less complicated. Some equity release products may include some restrictions or charges that make this kind of change expensive.

An equity release adviser can help explain the process of moving home with equity release. If you think that this is something that you might want to do, you can seek advice on the topic in advance and find a provider who makes this easier for you.

FAQ

1. What does an equity release advice service provide?

Equity release advice services are typically provided by independent financial advisers who have an expert understanding of the equity release market. They can provide information on a variety of equity release products, including lifetime mortgages and home reversion plans.

An equity release advice service can also help homeowners to understand the costs and interest rates, as well as how they accumulate over time, involved in equity release. Homeowners should understand that they are not obligated to pay interest on a monthly basis with most equity release products. Rather, the interest is added to the loan and is repaid when the homeowner dies or moves into long-term care.

2. How do independent financial advisers assist in the equity release process?

Independent financial advisers play a critical role in the equity release process by providing impartial advice and ensuring that homeowners understand the benefits and drawbacks of equity release. Advisers search the market for equity release products which are suitable to the homeowner’s individual needs and circumstances, including those offered by other providers.

They also explain to homeowners the implications of equity release on means-tested benefits, and for those who might lose their entitlement to certain benefits.

3. How does a home reversion plan work?

A home reversion plan is a type of equity release product involving selling a portion or all of the value of your home to a reversion company, in exchange for a lump sum or regular income. Although you can continue to live in your home rent-free for the rest of your life, you no longer own it outright. When the homeowner dies or moves into long-term care, the house is sold, with the sale proceeds divided according to the remaining proportions of ownership. 

If you sell all of your home, the reversion company will receive all the proceeds. Conversely, if you retain a portion of your home, this will be passed on to your estate.

4. Do I have to repay the money I release?

With equity release products, you are not required to repay the money immediately. Instead, the money you release, along with any accumulated interest, is typically repaid when you die or move into long-term care. This is usually done through the sale of your home. 

However, some equity release products allow you to make voluntary repayments, helping to manage accumulating interest. Before making the commitment, it is important to understand the repayment terms of any equity release product. An independent financial adviser can help to guide you through this.

5. How does releasing equity affect means-tested benefits?

Releasing equity from your home can potentially impact your eligibility for means-tested benefits, such as benefits that are calculated based on your income and capital. If the money you release from your home increases your capital or income above the state threshold, you may lose your entitlement to these benefits.

This is a complex area, and the implications can depend on individual circumstances and the specific benefits which you receive. Therefore, it is crucial to discuss this with an independent financial adviser who can provide guidance based on your specific situation, as well as the potential impact it may have and ways in which these impacts can be mitigated.

6. Should I consider shopping around between equity release advisers?

It can be worth consulting with several advisers to compare options and products. However, it is necessary to note that many will charge fees just for initial consultations. Before committing, make sure that you are comfortable with an adviser. In addition, never accept a plan just because you may feel obliged after paying a fee.

best equity release adviser

use the equity release calculator to see how much money you could release from your property. Takes less than 60 seconds!

Financial Promotions Sign-off

Where applicable, the adverts for Boon Brokers on this page have been signed off as a Financial Promotion by Boon Brokers Limited, to ensure that they are in compliance with Section 21 of FSMA. Boon Brokers Limited is authorised and regulated by the Financial Conduct Authority (FCA). The Financial Services Register number is 973757.

The Age Partnership equity release calculator has been approved and provided by Age Partnership. Age Partnership is a trading name of Age Partnership Limited, which is authorised and regulated by the Financial Conduct Authority. FCA registered number 425432.

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Get fee-free equity release advice from Boon Brokers.  

Call : 0333 567 1607

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If you take out a product from Boon Brokers, we will receive a fee for introducing you to them.

Unlike most equity release advisors, Boon Brokers do not charge any fees! Have a free consultation to see how they can help.

You can speak to Boon Brokers on the number below and discuss your options

0333 567 1607

Use the equity release calculator and see how much money you could receive.

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All equity release advice is provided by Boon Brokers Limited, which is authorised and regulated by the Financial Conduct Authority (FCA). The Financial Services Register number is 973757. 

 

If you take out a product with Boon Brokers, we will receive a fee for introducing you to them. Boon Brokers provides advice for free and without obligation.  By contacting Boon Brokers through us, the cost of any equity release product would be the same as if you had contacted them directly.  

The fee we receive is used to help keep this site operational and to produce new content.  

 

Think carefully before securing other debts against your home. Your home or property may be repossessed if you do not keep up repayments on your mortgage.

Get FEE-FREE Equity Release Advice