Is Equity Release safe?

Releasing equity from your home is not an option that anyone should take lightly. At John Whyte Equity Release, we have many years’ professional experience in providing impartial financial advice to help you weigh up the pros and cons so you can make the right decision. As an independent equity release broker, we can help you find an equity release plan that fulfils your personal criteria and requirements.

Equity release has received a lot of publicity in the media, and unfortunately not all of it has been good. Understandably, homeowners may be worried about what it means to release equity from their homes and whether it is a safe option to take. Bear in mind that your estate and any inheritance you are intending to leave to your loved ones will be reduced as a consequence of taking out an equity release plan. Your entitlement to means-tested benefits could also be affected. You can find answers to many frequently asked questions here.

Let us now take a closer look at the safety of equity release as a financial product, and the questions you should be asking.

Tracey Matthews – South Wales,

John Whyte was recommended to my dad for equity release and I am so glad he was as I don’t think we would have got this service from anyone else.

There were alot of moving parts involved and John stayed on top of everything right the way through and I feel he done more than his job, which I will be forever grateful for and my dad gets to stay in his home.

Mr & Mrs Firth – Shoreham By Sea,

Very happy with the way Mr Whyte carried out our requirements to the very end. He was professional and talked us through the whole process. We will be recommending him to friends in the future.

Malcolm & Christine Franklin – Bristol,

We were impressed with John’s detailed knowledge of Equity Release & the professional way he collected the necessary information & presentation of three proposal from which we choose the most suitable to suit our situation. His communication was also very good resulting in a speedy & satisfactory conclusion.

Richard and Carol Edwards – Caerphilly South Wales,

We wish to thank you for the exceptional way you dealt with our recent Equity Release drawdown.
You gave us a clear path that we should follow and carried out all of the stages in a very professional way, keeping us informed at each step. You dealt with us in a very empathetic way,
Keeping in mind our age and the exceptionally stressful situation we found ourselves in.
We would recommend you to anyone in a similar situation to ours.
Once again many thanks for all the help you gave us.

Richard Mathieson – Cheltenham,

It is a long held belief that you should borrow as much as you can for as long as you can, the rationale being that, over time, house price inflation will wipe out the debt. Being of a certain age, the term of any conventional mortgage becomes increasingly limited and so to be presented with so many options through the Canada Life product made it a ‘no-brainer’. Sincere thanks to John for introducing this product to me in an entirely professional and informed manner.

Tony Morris-Davies – Surrey,

I don’t think that we would have got a mortgage without John. He was highly efficent and always dealt with issues promptly. After a couple of false starts due to our circumstances, our third mortgage application was approved four days after the application was submitted and that saved our purchase which was on a tight deadline. So a big thank you to John and we highly recommend his services.

Mr & Mrs Deacon-Hedges – Hove,

I cannot thank John enough for helping my husband and I start to get a grip on our finances. Like many people we have a mortgage and had not really thought about things. We just paid it without thinking. Life events – my husbands ill health made us take stock. Firstly John helped us with our home mortgage and now he is sorting out our buy to lets. He has been so helpful and really made sure we knew what we were doing. No pressure and each step clearly laid out with time for us to think things through and ask questions. The lifting of the stress it had been causing is great and I feel in control.

Paul Stafford – Forect of Dean,

John was extremely professional and helpful, particularly when a surveyor from the first company approached would not provide a value as it was deemed an adjacent property was commercial. Within a very short period John had alternate providers lined up and the whole process went very smoothly indeed.

Margaret Lewis – Haverfordwest. Wales,

John was very helpful and guided me through the process, made sure that everything was going along as it should.
I would recommend him to my friends.

What safeguards are in place for equity release?

Equity release is one of the most heavily regulated financial products in the market, offering a number of key protections to keep consumers safe. Pre-regulation, this wasn’t always the case, which meant providers were able to offer unfair deals. It was these poor customer experiences that gave rise to unfavourable publicity in the past. Thankfully, those days are long gone and the integrity of the industry has been fully restored.

How is the equity release market regulated?

Whether you are considering a lifetime mortgage or a home reversion plan, there’s a wealth of consumer protection built in to the equity release market. The industry is fully regulated by the Financial Conduct Authority (FCA), meaning all equity release brokers and lenders need FCA approval in order to do business, and there are strict codes of conduct that providers must follow by law.

What is the Equity Release Council Code of Conduct?

The UK equity release industry is represented by the Equity Release Council (ERC). All reputable equity release advisers, brokers, solicitors and lenders are members of the ERC and adhere to the trade body’s rules and guidance. These are designed to ensure that customers receive high quality products and services that are delivered with the utmost integrity and transparency.

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What is the ERC’s official Statement of Principles?

For your complete peace of mind, the ERC has a Statement of Principles that all ERC compliant equity release products must adhere to. These include the following protective measures:

‘No negative equity’ guarantee, meaning you will never owe more than the value of your home
‘Security of tenure’, meaning you can stay in your home for life
Interest rates for lifetime mortgages must be fixed, or have capped variable rates, for the life of the loan
Financial and legal advice is mandatory for all customers taking out an equity release plan

John Whyte is an equity release specialist with well over 20 years’ experience in financial services, and a full member of the Equity Release Council. If you would like to find out how much cash you could release from your home and which equity release plan is right for you, please do not hesitate to get in touch. Call us on 01903 254993 or simply fill out the form below.

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Equity Release Sussex is a trading style of The Later Life Lending Network Limited, an Appointed Representative of The Right Mortgage Ltd, which is authorised and regulated by the Financial Conduct Authority (Ref – 649443). Registered in England and Wales no. 09832887. Registered address: 70 St. Johns Close, Knowle, Solihull, England, B93 0NH.

For Independent Equity Release advice we do not charge any upfront fees however,
a fee of up to 1% of the total cash facility arranged is payable (subject to a typical minimum charge of £1,295) on completion for our service in relation to lifetime mortgage contracts plus commission from the lender.

The exact amount will depend on the complexity and work involved in your case and will be confirmed by way of a formal fee agreement.

For Independent Mortgage Advice we charge a fee of up to 1% of your mortgage amount payable (subject to a typical minimum charge of £295 payable on application & £300 on completion (£595 in total) plus commission from lender. The exact amount will depend on the complexity and work involved on your case and will be confirmed by way of a formal fee agreement.

The information contained in this website is subject to UK regulatory regime and is therefore intended for consumers based in the UK