Some people may have concerns about taking out an Equity Release plan. However, customer protections put in place by The Equity Release Council – the industry body – should help to dispel some of those worries (with some often-asked questions below).

These protections are applicable if the plan goes via one of their lender members – which covers most deals out there.

Q: Can the provider take away my home?
A: All products from Equity Release Council lender members have a guaranteed security of tenure, so customers will be allowed to remain in their property for life, or until they move into long-term care, provided that the property continues to be their main residence. In the case of a joint policy, this then applies to the last surviving borrower.

Q: Can either my beneficiaries (or me) end up owing more than the value of my home?
A: Plans from Equity Release Council lender members have a no negative equity guarantee. This means that when the property is sold, and agents’ and solicitors’ fees have been paid, even if the amount left is not enough to repay the outstanding loan to the provider, neither the borrower nor their estate will be liable to pay any more.

Q: Can I still move home?
A:  Customers, who’ve taken out an Equity Release plan, have the right to move, subject to the new property being acceptable to the product provider as suitable security for the loan.

Q: Can I make penalty-free partial payments against the outstanding capital on the loan?
A:  This was allowed from March 2022, and those payments would help reduce the build-up of interest applicable to the loan. More than 90,000 made payments in 2022.
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In addition to the above protections, here are a few useful links that may be of help to your clients…

How much is the home worth?
Aside from getting it valued, they can check out the sale prices of comparable properties in their area: www.gov.uk/search-house-prices

Tracing lost or mislaid…
– Pensions
https://www.gov.uk/find-pension-contact-details  
0800 731 0193

– Bank, Building Society, or National Savings accounts
https://www.mylostaccount.org.uk/

– Bank account:
020 3934 0329 (UK Finance)
– Building Society account:
020 7520 5900 (Building Societies Ass.)
– National Savings account:
08085 007 007 (National Savings and Investments)

Additional route to search for insurance policies, pensions, unit trust holdings and share dividends. Previously, it was the Unclaimed Asset Register, but this has been discontinued. One alternative is https://www.gretel.co.uk/

Information on State Benefits
To see what an individual may be entitled to: https://www.gov.uk/government/organisations/department-for-work-pensions

Please contact me to hear more…