An equity release broker is a person or company that helps arrange equity release plans between customers and a lender. An equity release broker offers information and acts on behalf of the homeowner wanting to release equity from their home.
Independent equity release advisers will provide advice personal to customers as well as searching the whole of market to find a lender offering a plan which suits the customer’s needs.
Things to look for in an equity release broker
- When it comes to choosing a broker, homeowners will want to ensure they are members of the Equity Release Council. The Equity Release Council exists to promote high standards of conduct and practice in the provision of and advice on Equity Release which have consumer safeguards at its heart.[1] The equity release council have five product standards which all members must follow. Our article ‘features of equity release plans’ offers more information.
- It’s important to ensure that the broker chosen is regulated by the Financial Conduct Authority (FCA). Their focus for the equity release market is to ensure consumers are fully informed and receive suitable advice taking account of their individual circumstances. All brokers who are regulated by the FCA should be able to provide homeowners with their FCA number. [2]
Difference between an equity release broker and equity release lender
An equity release lender provides loans to borrowers. With equity release, the loan will be tax-free cash and equity release lenders typically charge interest on any loans provided.[3]
An equity release broker does not provide any lending directly. An equity release broker will help clients to find an equity release plan that’s best suited to them, and that plan will be provided by a lender.
Independent broker vs tied broker
When it comes to equity release homeowners can receive advice through advisers from a tied broker or an independent broker. A tied broker can only offer plans from the company or lender that employs them, and not their competitors, therefore narrowing their market search.
An independent equity release broker has access to the whole of market, meaning they aren’t tied to any lenders, and can see all available plans to find the one most suited to the homeowner’s circumstances.
Benefits of using an independent equity release broker
- Independent equity release brokers can search the whole of market to find a lender offering a plan most suitable to the homeowners current and future needs.
- Homeowners may get access to more products – In many cases, equity release brokers can give them access to a wider range of products than if they were to research the market themselves and look at a lenders’ offerings.
- The company in which they work for may offer related products such as will writing services and lasting power of attorney for example. They may be able to put homeowners in touch with the right person if they’re interested.
Questions to ask an equity release broker
- Are you FCA regulated?
- Are you members of the equity release council?
- How do you choose the right plan for me?
- What are my alternatives to equity release?
- What states benefits will be affected with an equity release plan?
- What are the risks involved with an equity release plan?
- Which lenders do you work with?
- What is the cost associated with my equity release plan?
Why independent Equity Release advice?
When it comes to equity release, we provide independent equity release advice. You can benefit from a no obligation appointment at your home, as our experience tells us that collaborating with our customers through a series of face-to-face meetings enables us to understand what is important.
We are not tied to any one equity release provider, meaning we can search the whole of market to find the most suitable plans available. We represent independent advice in the equity release sector and aim to promote high standard of conduct and practice in the provision of equity release advice.
If you’re considering equity release and would like to book an appointment with one of our independent advisers, you request a call back here, or call us on 0800 043 0725.
