Equity Release Used to Have a Bad Reputation - Here’s Why That’s Changed

We’ve all heard and read negative stories in the past about equity release and, because of this, many people have already made up their minds that equity release is just not for them. In its early days, equity release was inflexible with few options for the homeowner and it was very expensive between set up fees and high interest rates.

This was a problem because equity release, if it’s carried out responsibly and cost effectively, can actually be a very good option for those aged 55 and older.

7.5 Million of the Next 10 Million Retirees are Undersaved

Yes, you read that right. This is a massive number and there are a lot of companies gearing up to provide ways for these pensioners to supplement their income - and Equity Release is, in many situations, a hard option to beat. For this reason, the likes of Legal & General and Aviva are now major Equity Release lenders.

7.5 Million of the Next 10 Million Retirees are Undersaved

Yes, you read that right. This is a massive number and there are a lot of companies gearing up to provide ways for these pensioners to supplement their income - and Equity Release is, in many situations, a hard option to beat. For this reason, the likes of Legal & General and Aviva are now major Equity Release lenders.

Consumer Safeguards

Given its popularity, Equity Release is now fully regulated by the Financial Conduct Authority, which ensures consumers are treated with care and professionalism.

In addition to being fully regulated, the increased competition within the industry results in a better overall customer experience. As in any industry, more demand brings more competition among companies, and more competition means better products, better service and better pricing. This is exactly what’s happened with Equity Release.

Why are People Doing Equity Release?

For most of us, the equity we have in our homes represents the largest chunk of our wealth, but we have no way to benefit from it. This is the reason Equity Release was created - to benefit from the hard-earned equity you’ve built up in your home through paying your mortgage and from its increased value since you bought it.

One of the things people like most about Equity Release is that they no longer have a mortgage payment to make which frees up a lot of cash every month. In addition to the better monthly cash flow, people like being able to receive a tax-free lump sum of money which can be used for anything you want - popular options include paying off debt, home improvements and helping family members.

How To Get Started

Check out this simple, easy-to-use tool! Answer a few simple questions on the form to find out if equity release is right for you.