How Does My Advisor Assess Which Are the Best Equity Release Schemes?
For many people whether they can have access to the best equity release schemes seriously affects whether or not they should proceed. Of course, everyone is interested in the best possible products for their circumstances. However, by understanding the equity release advisory system, you can understand exactly how the advisor will assess the products which are likely to be the best possible solution for you.
Why You Need an Advisor
The equity release industry is heavily regulated to provide maximum consumer protection. No equity release provider is allowed to sell their products directly to consumers as every customer must receive adequate advice.
How Your Advisor Assesses the Best Equity Release Scheme for You
Your advisor will complete a factfind document. This document basically ascertains your current financial situation, what objectives you are trying to achieve and what your attitudes are towards inheritance. Your advisor will ask if you have discussed releasing equity from your home with your beneficiaries, since it may affect the inheritance that you leave behind. The factfind document allows the advisor to assess your options which would be best suited to attaining your goals.
Deciding if Equity Release is Best for You
In order to make an informed decision about whether equity release would prove to be the best option for your circumstances, your adviser will need to check to see if there are any feasible alternatives. In order to speed up this process, it can be worth considering these issues beforehand:
• Have you explored other income alternatives such as taking on a lodger or renting out some of your home?
• Are you claiming all benefits and state assistance that you are eligible for such as council tax discounts?
• Do you have any family members who may be able to provide some form of financial assistance to help you in the short or longer term?
• Would you qualify for other more conventional forms of finance such as loans or credit cards, which may be more suitable for your requirements?
• Have you tried to reduce your expenses to bring down your monthly expenditure and reduce financial issues?
• Have you any savings or investments which could be used to fulfil your requirements?
• Are there any grants or schemes which could cover the costs of home improvements rather than releasing equity?
Your Advisor Service
Once the advisor has assessed whether any of these possible scenarios would provide a more suitable alternative for you, they can determine if equity release is the correct option for your specific circumstances. If all the alternatives have all been eliminated by speaking with you and you have agreed to proceed, the advisor will explore all the equity release options which may be suitable for you. These will include whether you wish to make a monthly contribution towards the interest, whether you wish to leave any inheritance for your beneficiaries and what your attitude to risk is.
After the advisor has compiled this information, they will utilise their strong understanding of all the equity release schemes available in the market to find the best equity release scheme suited to your needs. Advisors have an obligation to ensure that you receive access to the best possible rates and deals which are available. However, not all advisors have access to the best equity release schemes. You need to choose an advisor who specialises in equity release and is dealing with a vast number of applications each and every month. This will ensure that they have an intimate familiarity with the marketplace and have access to special rates and deals.
If you are looking for the best equity release schemes, it is important to select your advisor carefully. Cheaper advice fees may not necessarily work out best in the long term. You need an advisor with full access to a wide variety of schemes in order to secure the best possible deal.