Equity Release F.A.Q.
Are Equity Release Schemes regulated?
Yes in part, depending upon the type of scheme or loan you choose, the Financial Services Authority (FSA) are now responsible for regulating all UK mortgage lending.
Reversion Schemes are at this point not yet regulated, however the Government has stated that they will be regulated in the future, but no date has been set as yet.
SHIP (Safe Home Income Plans) is a regulatory organisation for equity release plans which many lenders are part of. SHIP members agree to provide a fair and safe service to the public, and they also provide a certificate which must be signed by the customer's solicitor before a plan can be initiated. Find out more about SHIP's code of practice here
Here are a list of the other frequently asked questions relating to equity release schemes.
- Will I be able to live in my home for the rest of my life?
- What costs are involved in setting up an Equity Release Scheme?
- How much money will I receive?
- Will I be able to move house in the future?
- What if I change my mind?
- Are Equity Release Schemes regulated?
- What happens if property prices change?
- Who pays for repairs to the house?
- What happens if somebody moves in with me after I take out an equity release scheme?
- What will happen to my home after I die?
- Does my home have to be sold within a set time period?
- What will happen if I need to raise further funds in future?