Breaking News

Equity Release Plan: Advice to Seek When Applying for It

When considering applying for an equity release plan, it is vital that you ask the advisors certain questions. If you don’t get all the relevant information, you won’t be able to make an informed decision. One can get all sorts of advice here

When it comes to making a long-term decision like an equity release plan, it’s important that you know what you are agreeing to and how it will affect your future.

  • Meet Financial Advisors: The very first step is to meet with several independent financial advisors. An independent advisor can provide you details and impartial information on various options. Different advisors may have different opinions regarding your financial situation. Think of it as shopping around for quotations.

Ask each advisor how much you will be able to release against the value of your home and ask them to highlight the differences between each plan. It’s not just about the advantages so make sure that they are clear about the disadvantages as well.

  • Fees and Charges: it’s also a good idea to understand the fees and charges involved. It is advisable not to caught by surprise! These fees often include things such as interest on the equity release amount. In some cases, you can allow the interest to accumulate, and other plans allow you to make regular payments to pay the interest on a monthly basis.
  • Ask about a no negative equity guarantee and make sure that the provider holds all the relevant credentials before you sign. You want to make sure that your finances are in capable hands. In addition, no negative equity means that the amount owing upon conclusion of your plan will never exceed the value of your property. This offers homeowners fantastic peace of mind.