Deciding on equity release can be difficult for many people. The decisions are often emotional and lifelong, with implications beyond the financial aspects of equity release. It is essential to understand your role in supporting your family members as they consider this life-changing choice. In this article Jasin Stubbs, an expert in equity release area from EveryInvestor will provide main points to consider while making this important decision.Â
Talk to Your Family
Listen to what they have to say, but don’t feel pressured into deciding for them.
Support your family members in identifying why equity release is essential or not important to them based on their needs at this time of life. Be clear with all parties involved that you can only support decisions that are right for each person individually.
Offer help researching options by providing links to information sources, so they understand the pros and cons of different types of equity release products available today, such as lifetime mortgage, home reversion plan (HRP), and reverse annuity mortgage (RAM).
Outline the Advantages of Equity Release
Talk about the benefits of equity release and how it can enhance their lives.
If you have recently accessed equity release yourself, talk to your family members about what helped or didn’t help with deciding which equity release product was right for them — they may want to hear from someone who has been there before.
Talk about the many options available, and help your family understand how they might release equity without needing a reverse mortgage.
Give them resources such as the Equity Release Council website so that they can find out more at their own pace and in their own time – this way, it is less likely that you will influence or bias their decision by providing too much information all at once.
Weigh Up Possible Disadvantages of Equity Release with Them
As you talk to your family members about the possibility of equity release, they must understand all the possible risks. For example, suppose they need a reverse mortgage to be eligible for equity release. In that case, their property may not meet the eligibility criteria or have been used as collateral on another loan. In this instance, there could be severe consequences – such as losing their home and other assets, if they fail to keep up with repayments on an alternative form of finance like a personal loan.
If any of these apply to them, ensure that your loved ones know when discussing how much money has already been spent towards retirement before deciding whether or not we should access more cash from our estate through equity release.
Speak to An Equity Release Advisor with Them
This is the best way to help your loved ones decide whether or not equity release is right for them.
Only an Equity Release Advisor can provide unbiased information on what will happen if they choose this type of home loan and their rights as consumers.
An Equity Release advisor could answer any questions, address concerns and give advice based on current legislation and changes in the market that may affect future customers – ensuring that you are fully informed before signing anything!
A common misconception is that if you have equity in your home, it means the house will be taken away from you and sold to pay off your debts. This isn’t true! There are ways for family members with no or negligible financial responsibility to help others release equity without losing their property.
