7 Questions to Ask an Advisor About Equity Release Schemes
According to Hodge Lifetime, seeking specialist equity release scheme advice is playing a greater role in the equity release market.
So in order to get the perfect equity release scheme there are a number of important questions you should ask to get the right advice and right advisor!
Are you regulated?
The Financial Services Authority (FSA) is the independent body that regulates the financial services industry in the UK. It sets the standards firms must meet and can take action against firms that fail to meet the required standards. Additionally Safe Home Income Plans provide a code of conduct for equity release providers and it is advisable to use a provider that is recognised by SHIP or a provider which offers similar guarantees.
How unbiased is your advice?
It seems like quite an abrupt question but it is important because there are two types of advisors – tied and non-tied. Ideally you are looking to get your equity release advice from a non-tied advisor because they can offer you a scope of products from any provider. Tied advisors are limited to the products from a smaller number of providers.
What is your equity release background?
This is a great way for you to ascertain an idea of a company’s background and how established they are in the equity release scheme market.
Are the equity release schemes suitable to my profile?
It is a fair question to want to know if all of your circumstances have been considered when an equity release scheme is recommended. Some of the key things an advisor needs to consider are age, lifestyle, existing income and state of your finances.
What do you know about the equity release scheme?
Make sure you get plenty of information about the equity release scheme recommended and why that particular one has been recommended rather than other equity release schemes. You might also want to ask them about how it affects your benefits entitlement, inheritance and ownership should you move into care.
What costs will I have to pay?
There will be costs for the actual equity release scheme and also fees to pay. It is beneficial to get a clear understanding of these early on so you can plan thoroughly and budget properly.
How does this equity release scheme compare to other products?
Ask your advisor why they chose a particular equity release scheme as opposed to others and how the costs would compare if you used a different means to get a plan.
These questions could form a useful starting point to ensure that you get the right advisor and also the right advice about equity release schemes.
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