It’s a con, a scam, you will lose your home….
These are common comments we hear at CFS Equity Release on a regular basis when the subject of equity release is raised. In fact look at any Facebook post about Equity Release and you will find it littered with comments stating:
“it’s a complete rip off“
“Dont’ do it“
and even ‘”Thieves just trying to steal your home”.
There is a huge misconception 
about today’s modern equity release plans, and that it is why it is essential that you take advice from a qualified financial specialist. Clearly, the ‘bloke down the pub’ is not the best source of information and often the negative and mainly incorrect comments are unfounded and not based on fact. There was certainly plans in the past – namely HIPS that are often the products that are cited in these comments:
HIPS
Home Income Plans – this is where a lump sum was released from the property to purchase an annuity. Annuity rates have been falling now for several years and this means they don’t pay much. So for a Home Income Plan to be feasible for most people an enormous amount of money has to be released from a property.
People will probably find that the annuity payout only covers the interest bill and therefore there is nothing left over for a monthly income. Therefore, you will not find any adviser in the equity release market recommending such a plan today.
Shared Appreciated Mortgages
In addition, SAMS were also another reason that equity release got a bad name, these are no longer available and in no way represent the modern products available now.
Equity release or Lifetime Mortgages as they are now commonly known as, are forming part of the normal retirement planning process. These plans are rigorously controlled by the FCA (Financial Conduct Authority) and the reputable lenders and brokers will all be members of the Equity Release Council. If you examine the lenders involved in this market, they are the big insurance companies such as Aviva, Legal & General and Liverpool Victoria to name the most common – clearly such organisations have a massive reputation to uphold and would not be dabbling in anything ‘dodgy’.
Qualifed Professional Advice
Advisers, have to hold financial qualifications, the most common being obtained from the London Institute of Banking & Finance, these qualifications are the Certificate in Mortgage Advice and Practice and the Certificate in Regulated Equity Release. An adviser will have to hold both qualifications to advise you. CFS Equity Release use a select panel of lenders and this means that unlike a tied adviser, we can research hundreds of options across our lenders and recommend to you the product that will give the lowest cost of borrowing from our lenders. Even one of the largest brokers in the market has started to offer tied advice as it’s first port of call, which means you cannot be assured you are getting the right deal, as they will only examine their in-house offering if you meet the initial criteria.
Our quality approach will include an initial no obligation visit/ call from one of our advisers, to fully explain the products available and will as a matter of course, explore whether there are any other options you could consider if available to you, such as downsizing or releasing pension pots not yet utilised. A ‘Fact Find’ will be undertaken and this will gather the required financial information and your current circumstances. From this your adviser will research our lenders offerings and then arrange to meet you again with a fully documented recommendation.
FEES
Do expect to pay a broker fee, we offer a simple fixed fee of £1,250, in addition you will need the services of a solicitor to undertake the conveyancing work and independently advise you. Professional advisers will provide you a complete breakdown and disclose all fees that may be applicable, so do budget £2,249 upwards for fees, but these can be added to the loan if required.
You will also benefit from a no-negative equity guarantee, you will be able to live in your home for the rest of your life, have the flexibility to move if you wish and gain access to funds that are tied up In your bricks and mortar. So do take professional advice and you may find that equity release is a viable way for you to enjoy financial freedom in your retirement.
Find out how much funds you could realise from your home’s asset value:
Call us for a no obligation chat today.
