I Know What Deal I Want, Do I Still Need Lifetime Mortgage Advice?

Lifetime mortgages have becoming increasingly popular over the last few years. They allow home owners to release the equity tied up in their property without the inconvenience of having to move home. Many people have researched their options very carefully and wonder why they need to find an equity release advisor, when they know what lifetime mortgage they want. However, there are a number of reasons why lifetime mortgage advice is necessary.

FCA Regulation
The Financial Conduct Authority (formally known as the FSA) categorise all lifetime mortgages as a “high risk” financial product. This level of risk means that they insist that people receive proper lifetime mortgage advice before proceeding. The main reason why the risk level is categorised in this way, is because of the long term implications involved in taking out this kind of financial product. Equity release can be extremely beneficial but it can also affect the home owner and their beneficiaries. The provision for receiving adequate advice ensures that people are aware of their options and the restrictions or limitations of their chosen scheme.

Access to a Greater Variety of Schemes
Although you may have already researched your options for a lifetime mortgage, the key to getting the best possible scheme to your needs is to obtain proper lifetime mortgage advice. Professional and qualified advisors have access to a far larger number of products and services. Independent advisors are not tied to one specific company or product range, so they can offer advice across the whole equity release market. This could potentially save you thousands of pounds in the long term.

Must I Consult an Advisor?
Yes. You must receive lifetime mortgage advise in order to secure your product. Some people mistakenly believe that they can directly approach companies. However, the companies are forbidden by FCA rules to transact directly and will refer them to finding an appropriate advisor.

For anyone interested in securing a lifetime mortgage, proper lifetime mortgage advice is necessary and required for your own protection. You will most likely realise that when you find an advisor who is independent and qualified to provide advice on all aspects of lifetime mortgages, you will secure a much better deal than you originally thought. Specialist advisors deal with these arrangements every day and can ensure that you proceed with the deal which is best suited to your needs. They can expedite the process and provide advice and guidance to ensure that you gain the resolution you require.