Mythbuster: "I'm going to be scammed or ripped off"

Equity release safeguards and protections

We sometimes hear equity release referred to as a 'scam', or a 'rip-off'; in reality, there are a wealth of different ways in which equity release customers are protected.

We always make sure that our customers are well-informed and well-protected. We are members of the Equity Release Council and take the time to get to know you and your personal circumstances, as the first thing to work out is whether equity release could be right for you.

This helps us make sure that you only go ahead with equity release if you want to and it’s right for your situation.

If it isn’t, we’ll tell you.

What’s right for you

We always act in your interests, discussing alternatives to equity release, such as downsizing or other forms of lending. Our equity release advice is unique to you and your needs, delivered by qualified experts.

Your equity release adviser will provide you with an illustrative example of costs for the plan they recommend. You'll get a chance to discuss them up front, ask any questions you may have, and make the decision in your own time.

The importance of advice

We understand that what’s right for some of us in retirement is not always the case for everyone. Equity release isn’t the right solution for everyone, and taking advice from a specialist equity release adviser is a crucial part of that decision-making process.

In fact, it’s a regulatory requirement. You can’t take out an equity release plan without first taking advice. That’s where we can help.

All of our advisers are fully-qualified equity release experts. They’ll provide you with all the information you need to decide if equity release is right for you.

Your other protections

All of the plans we recommend meet the Equity Release Council standards. That means they come with a number of important guarantees, including the no negative equity guarantee. With it, you’ll never owe more than your home’s worth, so any debt accrued through equity release can’t be passed on to your loved ones. However, it’s important to remember that a lifetime mortgage may leave you with limited or no property equity remaining, and it’ll reduce your financial options in the future.

As well, with all the plans we recommend, you’re guaranteed the right to stay in your home for life and have the right to move home should you wish to, subject to criteria.
 

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Things to consider

• The loan, plus compound interest, is typically repaid through the sale of the property when the last remaining applicant passes away or moves into long-term care
• Our fixed advice fee of £1,699 is only payable on completion