Equity Release Companies: Helping People In Their Old Ages

By Author: Jimwright
Total Articles: 100
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An increasing number of people are using Equity release schemes UK to help them in getting rid of treacherous retired life. But there is an age factor as far as the equity release scheme is considered. There are two type’s scheme, a lifetime mortgage and the other home reversion plans. A male aged over 70 with a property worth about $300,000 with no mortgage or any type of outstanding loans against the property will be allowed to release around $100,000. Generally this money is paid as lump sum and you get the option of spending it on anything. There is no binding of where you will use that money.


In spite of applying to the scheme of a particular company, chose the right scheme that will solve all your requirements. Equity release companies offers different varieties of scheme to choose from. In spite of applying for that scheme, you will continue to live in your house. The interest builds up on a monthly basis and this is either fixed or on a variable basis. On the case of your death, the property is sold off to the care of rolled up outstanding and monthly payments. This rolled up mortgage monthly payment ...
... together with the initial lump sum, which will be repaid to the equity release company.


These schemes are the most popular in the British Isles so the popularity of the Equity release schemes UK is gaining popularity. The equity release schemes of today in the UK are very much regulated by the UK Financial Services Authority. All lifetime mortgage and home reversion companies come under the authority of an independent umbrella. They all follow the strict compliance regime and many advisors’ feel that the regulations are over the top and more likely as a sledgehammer to crack a nut. Qualified equity release agents or advisors should demonstrate their competency. The rules are almost compulsory to follow.


The Equity release companies demonstrate their competency by passing some accredited examinations. These are all part and parcel of equity release schemes. In addition to it they are constantly monitored and are also required to comply with some rules. These rules are known as continual professional development. This helps them to update their knowledge, regarding the various schemes. They are continuously monitored by the Financial Service Commission. The marketing of life time mortgages and also the home reversion plans are very much regulated. They are very much strictly regulated and breaking any rule attracts fine. There is also a law that equity release firms will also have to ensure, that their advertisements are not all misleading to customers. All the advertisements in the print, electronic and the web-media should not at all be misleading. Instead it must be the most helpful to the consumers. They must also contain the required risk factors in it.