Finding the best
equity release mortgages in the UK will be a time consuming task. And in
the end you may decide it's not for you. But if you're weighing up the
pros and cons of these products versus downsizing or selling and renting
back it's important to get the best information you can.
Conventional equity release services have come in for quite a bit of
stick in the press.
In 2006, Which?
called them "the lifestyle dream that can turn into a nightmare",
punitive costs and misleading advertising to name but two reasons for
Some pillars of the financial community such as Halifax Bank Of
Scotland (HBoS) are even on record as saying they'll have nothing to do
with equity release services - at least until the market becomes mature.
In other words - properly regulated.
Finding the best equity release mortgages in the UK..Start by getting unbiased advice
Initially you might be best advised to avoid individual financial
services companies offering equity release
services or products. And don't rush to sell your house either! Get your
Once you have your
bearings you can also use one of a variety of online tools. These allow
you to compare the equity release services and products offered by a
range of providers. Just use Google to find them. A useful place to
start with is
Unbiased and you can also try one of the
mortgage portals which will give you an idea of the range of
These provide information which will help you when
you're starting out on your quest to find the best equity release
mortgages in the UK. But remember. Finding the best equity
release mortgages in the UK is a somewhat relative term. In the end it's
all about what is right for you, in your circumstances.
There are also a
no-cost organisations listed on this page
here who may be able to help you think through the issues.
When you get to the
stage where you need specific information based on your own
circumstances, you could do worse than find out if your existing lender
(if you have one) provides home equity release products.
Help the Aged
an equity release scheme in conjunction with NHFA Ltd. Their product is
in the form of a “Lifetime Mortgage”. You should compare this offering
with others, but as always, beware the small print. Consult other family
members or speak to friends. This is an important point because even the
best equity release mortgages in the UK can have important consequences for your
family after you've gone.
The true cost of releasing equity..
One of the reasons equity
release services enjoy a poor press is they're sometimes viewed as
taking advantage of vulnerable groups of consumers. Of course, it's also
important to point out that there is
wide-spread variation in the actual cost of these mortgages.
The real costs involved can equate to a
very high % of your equity. True, the actual cash cost of the
arrangement may not be a number one priority. But with conventional
equity release services because of their long or "lifetime"
nature, it can be difficult to evaluate what the "true" cost is.
Of course, it can come down to being a pragmatic decision. But there's no point in
throwing money away is there?
Even the best equity release mortgages
in the UK may not suit your circumstances. Your alternatives include
downsizing or selling and
renting back your home and these may be better suited to your circumstances.