Applying for equity release can be a daunting step for many, which is why Freedom Advice offers unbiased and informed advice on the best steps to take regarding taking out an equity release loan.
As taking out an equity release plan can be such a big step, it’s important to understand the risks just as much as the rewards.
With that fact in mind, let’s take a look through some of the safeguards regarding the equity release process.
The Financial Conduct Authority (FCA) regulates all equity release plans, which means that lenders, brokers, and advisers must adhere to the FCA when lending money through equity release plans.
Even those giving equity release advice must adhere to the FCA and follow its strict codes of conduct.
This means that anyone taking out an equity release loan will be protected by regulations set out by the FCA.
The is a special council to regulate the equity release industry
The Equity Release Council (ERC) is the governing body of the equity release industry and sets out a strict code of conduct that all members must follow.
These rules are designed to protect consumers and ensure that:
Equity release plans are designed to last a lifetime, which means that as the years pass, the market evolves and changes. With this in mind, safeguards and flexible features should be built into any equity release plan, such as:
There are, however, ways to minimise inheritance loss, which can be built into the plan that you take out with a lender.
Freedom Advice has decades’ of experience in helping people successfully apply for equity release plans, and we can help you minimise the cost of a plan so that you can pass on as much as your estate as possible to your loved ones.