Equity release providers who give advice and sell equity release must be regulated by the Financial Conduct Authority (FCA) or be an agent of a firm that is regulated. You can check the FCA register to see if the firm is listed. The individuals of these firms who give the advice must be qualified to do so.
We have set out the three stages of receiving advice about equity release. This includes what to look out to make sure the advice process is being managed professionally.
Your equity release adviser should make you aware of certain things during your initial meeting. They can do this verbally in your initial consultation or in a written document.
Your equity release provider and adviser must tell you that they are giving you advice and if this comes with any cost.
Your equity release provider or adviser must set out what services they will deliver; are they offering lifetime mortgages or home reversion plans or both? Can they access the whole equity release market or just a few selected providers?
Read our guide How does equity release work.
Once your adviser has completed their fact find, they may decide to make a recommendation to you. They will give you a mortgage illustration document, also sometimes referred to as key Facts Illustration (KFI). These documents include:
This documentation will also include a suitability report.
Your KFI can help you to compare schemes from other providers, you can use this with your equity release adviser to help you to find the best equity release product for you.
You will receive an offer document once your application for equity release has been approved. Your offer will include:
Read our Equity Release FAQs to find out how equity release could affect your benefits.
Equity released from your home will be secured against it.
Disclaimer: This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.