Provided you choose an equity release scheme provided by a member of the Equity Release Council, the trade body for the equity release sector, it must provide you with a “no negative equity guarantee”. This means that if house prices fall and your property ends up being worth less than your outstanding loan, you won’t have to pay any more. Your plan must also provide you with the right to remain in your property for life or until you need to move into long-term care, regardless of what happens to property prices.
You can find out more about equity release in our guide Equity release: What is it and how does it work? Equity release might be an option for you if you don’t have any dependents you want to leave an inheritance for, or enough income to cover mortgage interest payments, and want to access some of the wealth tied up in your property. However, you must seek professional advice before taking out an equity release plan. You can find an advisor through the Equity Release Council.
There are a number of specialist equity release advisors available, but if you’re looking for somewhere to start, Key Group are one of the more established providers who offer advice on equity release. They are a member of the Equity Release Council and have an excellent customer service rating on Trustpilot. If you are interested in a free, no obligation conversation with one of their equity release specialists, you can call 0800 188 4813 or request a free callback.