Modern Equity Release
Modern day equity release has a number of advantages over the previous iterations of the product.
Members of the Equity Release Council
The advantages of Modern Day Equity Release
Equity Release has historically had a poor reputation.
However, modern Equity Release has many advantages over older versions:
- The increased regulation has been designed to further protect applicants. The Financial Conduct Authority (FCA) regulations and the support of the Equity Release Council (ERC) promotes safe equity release products and works to safeguard the interests of homeowners.
- The entry into the market of new lenders as well as the traditional Equity Release giants. Lenders such as Aviva, LV= and Legal and General have been joined by innovators such as More 2 Life, Just and Pure. This has had a real benefit for clients as competition in the market has increased and flexibility of products has improved. The number of Equity Release products has grown tenfold in the last five years which means far more choice is available for clients exploring their options.
- Improved products. With the huge increase in products has come a variety of interest rates, the ability to pay the interest on a monthly basis, as well as products that allow you to overpay the capital as well as interest. Also, all lenders who subscribe to the rules of the Equity Release Council have a ‘no negative equity’ guarantee which means that there is no possibility of you owing more than your property is worth at any stage. This is a really key aspect of Equity Release for clients who can have the guarantee that their Lifetime Mortgage debt will never be higher than the sale price of their property.