If you are considering releasing equity from your home, and you are finding that the labyrinth of financial jargon and dense, technical policy descriptions are difficult to navigate, it is important that you look for solid independent financial advice. Advice from an independent company can overview different equity release products on the market, how you can use them, who they are best for, where you can find them, and even when they might be available to you. Two types of equity release exist for retirees in need of shoring up their income: home reversion and lifetime mortgages. As important as it is to find a person willing to offer independent advice, it is just as important to locate a person you can trust. Learn about certain professional qualifications you can use to search with.
Why Choose a Proper Agent
Unless you are experienced in this field, you might be a little anxious about choosing the right professional to help you to make your decision. However, with a little common sense, some research and sound fundamental guidelines to help you, you should be able to source precisely the right advisor for your needs.
Certifications Agents Should Have
To begin with, you should search specifically for professionals who have passed their CeRER examinations. This qualification certifies that the holder has specialist knowledge of equity release schemes and will be able to give you the full benefit of his or her expertise in the field. Any professional website should list this qualification and any other exams advisers have passed to provide expert financial information. If you do not see it listed on their online profiles, ask to see a copy of their certifications before you sign a contract.
Finding an Agent
Plenty of online websites exist. A simple search engine result request will provide you with a list of advisers in your area. You can also find comparison or information sites that cater to consumers. These sites offer a list of local advisers and vet them for you saving you from the work of searching multiple websites.
In order to secure a shortlist of candidates from which to choose, you will need to use some resourceful thinking. Ask your friends and family members for advice and recommendations, or inquire at your bank. Networking is one of the simplest ways to locate sound financial advice.
If you decide to ask your bank, make certain the person has knowledge in retirement equity releases and not mainstream loans only. Additionally, your bank should be able to refer you to services in their industry you can locate an unbiased adviser through.
Learning a Bit about Equity Products
Equity release schemes using mainstream mortgage means require you to take out a mortgage or second mortgage on your home. You gain a lump sum of cash that can be used for certain expenses. Retirement equity release opportunities differ because you do not have a monthly repayment including interest during the life of the loan. Instead, lifetime mortgages allow you to hold all payments and interest repayment until the end of the loan. At death or a move to a new home or location, your home is sold and the proceeds pay off all interest accrued and the principle balance. Any money left from the sale is provided to you or your beneficiaries.
Home reversion is even different. With home reversion you sell a section of your home based on value and how much money you need for your retirement. You live in your home until death or you decide to move and sell the rest. At this time any unsold portion is given to you or beneficiaries as a lump sum. The home reversion agency then sells the home for a profit. It is an investment for the home reversion company.
Just from this quick explanation you can see there are differences, advantages and disadvantages to plans on the market. To truly understand them seeking advice is not only helpful but important. The above can also give you a few terms to conduct your only search by in order to locate independent advice. By searching home reversion you can locate individuals who are specialists in this area, narrowing down your financial expert search a little more than a blanket search term.
Signing up for an equity release scheme is a big decision, and it is one that you should not take lightly. In order to help you to choose the best possible scheme for you, it is a good idea to seek good financial advice before embarking on the process.