Equity Release

It is very vital to choose your equity release provider with great caution. This is an important decision and making the correct choice is crucial. Whether you want a lifetime mortgage or a home reversion plan, there are many providers and as many as 30 odd plans to choose from.
Their mission: Equity release providers release cash against your property, depending on its current market value. They yr usually purchase whole or part of your property. You and your spouse are permitted to stay in your house till either of you are alive. The provider does not levy an interest on the loan amount. After the death, the property is sold off and the provider can claim the profit from the sales. For example if one sold 30% of the property to the provider, the firm receives an amount of 30,000£, if the property was sold for 1,00,000£. Nevertheless you will not get the market value of the property. For example, if 50% of your property is sold to a reversion company, they only pay 25% to 50%, based on your age. This is because they do not get any immediate profit from the property.
The unsinkable SHIP: When choosing a provider, make sure that they are a member of the Safe Home Income Plan, which is a trade body which sets the code of practice for equity release firms. This includes a ‘No Negative Equity Guarantee’ so that you will never owe more that the property value. Select firms under the FSA’s regulation. Every provider includes various benefits and it is better to seek the help of a professional financial advisor before signing the deal.

Below are top five equity release providers who are SHIP compliant and FSA regulated.

• AVIVA EQUITY RELEASE UK LTD – The fifth largest insurance provider in UK entered the equity release market in 1998. A trustworthy company, it provides a wide range of superior products. More than 45 million customers world over have trusted this company. They have a team of advisors who ensure that the customer gets the best deal.
• BRIDGEWATER EQUITY RELEASE- The company has been cited as the largest real estate owner in UK. They offer persons over 65 years home reversion plans. They have won several equity release awards and have been voted the best home reversion company for three continuous years from 2006.
• HODGE LIFETIME- The oldest recognized equity release provider in the UK. The customers are given a fair deal and the products are sold through FSA regulated intermediaries. Their specialty is custom made products which cater to individual needs. They serve customers from the age of 55 and the plans are simple, accommodating and clear.
• HOME & CAPITAL-The company offers lifetime mortgage plans to home owners above the age of 65. They also offer SHIP advice to property owners looking to release equity from their home.
• MORE 2 LIFE- Equity release experts who have been in the market for over 10 years providing solutions to over 4,00,000 customers. They have products designed to improve their client’s lives, discharging money efficiently.

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