Making sure the Equity release Advisor is sound.

Making sure the Equity release Advisor is sound.

Let me just start by saying that this is not meant to give you any advice on the subject of Equity release. It will tell you what it is but it will not tell you whether it is the right thing for you to do with your home. For that I would direct you to this Equity Release Wiltshire company at https://chilvester.co.uk/equity-release/as they will be able to go through everything with you.

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Firstly, there is a good chance that you will have read many horror stories about evil financial institutions turfing elderly people out on the street so they can get their home. The industry around Equity release has been heavily regulated by the Financial Conduct Authority (FCA) and no one can give you any advice, and you must receive advice legally before any agreement can go through, unless they have the correct certification and qualifications to do it.  These qualifications test the person in their understanding of the process of Equity release in the following ways,

  • Who their customer is likely to be.
  • There circumstances and reasons for undertaking equity release
  • The suitability and affordability of the product.
  • Outlining the advantageous and disadvantageous of Equity release in the circumstances.
  • Levels of risk taking into account your personal situation.

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This is just an overview of the examination and it takes at least a year to be passed. After that financial firms will have competency tests and a requirement of professional development, meaning that the advisor must make sure that undertake training and keep abreast of any changes to the policy and practice of Equity release. If not then they and the company will feel the full wrath of the FCA. This could be a fine or the company and individual banned from giving advice for a number of years.

Equity Release is a way of making sure that you retain your home and have some money in your retirement years. Pension, both state and private are not limitless and with the increasing cost of the world and the fact that we are living and being active longer has meant that we may need more income. There are many types of equity release and the advisor will ensure that you get the right one for you and your situation by thoroughly going through them and finding out what is the best for you. But do not worry, you are protected.

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