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Guide to equity release

Published by FTAdviser | Nov 23, 2011

How can an adviser assess an individual’s financial situation and preferences to make sure equity release is the right solution for them?

This guide looks at the different types of equity release plans available, the pros and cons of such schemes and the FSA’s expectations for advisers.

Answers supplied by the FSA, Andrea Rozario, director general of Ship, and Vanessa Owen, head of equity release at LV.

  1. Q: What is equity release?

    Equity release is the process of releasing the wealth (i.e. capital) tied up in a person’s home without them having to move or make monthly...

  2. Q: What are the pros and cons?

    One of the mains pros of both of lifetime mortgages and home reversion plans is they allow the homeowner security of tenure.

  3. Q: What should I ask my client?

    A vital question for advisers to ask clients contemplating equity release is “Are they in receipt of state benefits?”

  4. Q: How do I ensure my client gets a decision asap?

    One of the best ways of gathering information about a client is to simply talk to them, and hold a regular review or fact find of their financial...

  5. Q: How important is financial strength/service?

    Due to the relative longevity of an equity release product, Vanessa Owen, head of equity release at LV, said it is prudent to take into account the...

  6. Q: How should I use a sourcing tool?

    There are a variety of websites and publications that offer sourcing facilities.

  7. Q: How can I compare equity release products?

    In-depth thorough research is essential.

  8. Q: What are the FSA requirements?

    The FSA requires that any IFAs who wish to advise upon equity release have certain qualifications.

  9. Q: Do I need to tell the client’s children?

    You do not have to, but Andrea Rozario, director general of Ship, encouraged advisers to suggest anyone considering equity release should talk it...

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