Equity Release FAQ
Lifetime Mortgages and Home Reversion plans are indeed regulated by the FSA (financial services authority).
This means in case of complaint you are able to use the financial ombudsman service.
I have heard the word SHIP - what is it?
SHIP stands for Safe Home Income Plans. They help ensure consumer protection in the area of equity release. The best way to find out more about SHIP, what they are and what they do, is to visit their webpage, here: http://www.ship-ltd.org/aboutship.aspx
Are there different types of equity release?
Yes, there are lifetime mortgages and home reversion plans. There are articles on each of these methods in our equity release section that outline each option and how they differ.
Who should I discuss matters with if interested in equity release?
From the personal side of things, whilst it is your decision you should consider discussing with anyone who would be affected or has an interest: particularly your family and those who would inherit your estate on death.
You should definitely seek professional advice too, look at the fsa website (www.fsa.gov.uk) for more information on financial advisers and how to contact them. Note that it may turn out there is a more suitable way for you to access the cash you need in your particular circumstances, this is just one way in which professional advice is so important to seek.
What does no negative equity mean?
If the value of the loan rises above the value of the property for whatever reason, a no negative equity guarantee means your estate won't ever have to pay back more than the value of the home.
What other choices do I have?
Get professional advice to discuss in detail the particular choices open to you. However, options could include seeing if any of your other investments or assets could release the money you need. Another option is to move to a cheaper property. Perhaps family would be willing to help out financially.
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