Tips for Finding the Right Equity Release Adviser
Opting for an equity release scheme may have considerable effect on your financial position. It is necessary to seek professional advice and guidance before you make any decision in this regard. Here are a few details you need to know before you choose a financial adviser.
Equity release advisers may belong to any of the three categories:
- Tied advisers are associated with a particular financial service and offer advice and assistance with regard to its products only
- Multi-tied advisers are associated with a certain number of financial services and offer advice and assistance with regard to their products only
- Independent advisers are not associated with any particular financial service and provide advice and assistance with regard to all products available
The equity release advice and guidance available from the tied and multi-tied advisers may not be poor; however, it is limited because of their association with particular financial services. This limitation does not exist if you opt for an independent financial adviser for releasing equity from your home.
What should you keep in mind when choosing a financial adviser? Pay attention to the qualification and experience of the adviser before you choose him/her for this purpose. Also, make sure that the adviser is registered with the Financial Services Authority.
The responsibilities of financial advisers with regard to equity release include the following:
Ascertain if equity release is right for you. The adviser enquires about your financial circumstances and finds out possible solutions. If alternative solutions are available, they may not recommend equity release for you.
Determine eligibility for the schemes. Different financial service providers may have different criteria regarding eligibility for these schemes. Your financial adviser will help you find out whether you qualify for equity release.
Illustrate the advantages of different schemes. The features and benefits of equity release schemes differ from each other. The adviser would discuss the advantages that you may avail of from a specific scheme depends on your circumstances.
Explain the risks associated with this. Opting for an equity release scheme may reduce the estate you leave behind for your family. It may affect your State approved benefits. Your financial adviser will help you understand the short and long term consequences of this.
Support you throughout the process. Even if you use online resources and tools like an equity release calculator, this only provides an overview of the matter. A financial adviser can help you find the right scheme based on your requirements and circumstances.
How much do the financial advisers charge for their services? The financial advisers may charge you for their services on an hourly basis. They may also charge you a flat fee for their advice and assistance. If you use the services of a tied adviser, they may charge nothing as the financial service they are associated with pays their fees.
Ask for recommendations from your friends and family to find a financial adviser specialising in equity release. If necessary, you may also use online resources to find qualified and experienced financial advisers.
Author Bio
Sophia Webb is a financial adviser. She offers you a brief guideline regarding the necessity and method to choose a professional for advice and assistance when releasing equity from your home.
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