Is equity release safe?

Equity Release allows homeowners aged 55 and over to use the money tied up in their homes to help with their needs. In 2022, over 65,000 people released money in this way for things like repaying debts, helping out their families, home improvements or simply to help with the costs of day to day living. The money is tax free and can be used for any purpose.

Sound interesting ? Possibly, but the first question people often ask is ‘Is Equity Release Safe.’ People want to know ‘if I take an Equity Release plan, am I at risk of losing my home?’

The good news is that with an Equity Release plan, your home is not at risk. Companies that advise on Equity Release and lend money to customers through Equity Release plans are overseen by a governing body, The Equity Release Council. The Equity Release Council works with the government to promote safe Equity Release products, providing security for homeowners. Retirement Solutions only advises on products that are approved by the Equity Release Council. These plans contain a number of important guarantees, 2 of which are (or do you want to list all the ERC guarantees?)

1. Firstly, all products approved by The Equity Release Council have a ‘no negative equity guarantee.’ This means that if you take out an Equity Release plan, you will never owe more than the value of your home.

2. The second guarantee is that products approved by the Equity Release Council guarantee that you will always own your home and that you can stay in your home for life.

If you’ve found this video helpful, why not have a look on our website – RetirementSolutions.co.uk, where you’ll find lots more videos giving information about Equity Release.