(Equity Release Council standard). That said, many new plans now offer fixed-term early repayment charges, making early repayment both practical and achievable To overcome this, the Equity Release Council has published a temporary modification to the rules following a detailed consultation with its members and the industry. Even if the future value of your client's home is less than the amount they owe, their estate will never be left with a debt from our lifetime mortgage products when your client dies or goes into permanent residential care and their house is sold. You have the right to move to another property subject to the new property being acceptable to your product provider as continuing security for your equity release loan (Equity Release Council standard). OneFamily Advice is a member of the Equity Release Council. In later years there are many reasons why a homeowner might want to release a lump sum from their property. We only recommend a plan if we are convinced it’s in your best interests. Aviva equity release, one of the most established equity release plan providers in the UK, have made available lifetime mortgage plans to over 150,000 consumers since 2000. If a firm is a member of the Equity Release Council, they must arrange for you to have at least one face-to-face meeting with a solicitor. An equity release mortgage allows those who are between 55 and 95 to get a lump sum without having to sell and move house – something which can be a significant upheaval, especially for the older generation. The product has a “no negative equity guarantee”. There are two main types of equity release: Lifetime mortgage. An ex-council house, as long as it is outside the discount period set by the relevant local council, is classed in the same way as other residential homes, whether freehold or leasehold and as such it is possible to secure an equity release mortgage. We closely adhere to the Equity Release Council’s high standards of conduct and practice in providing and advising on equity release products. The council told Mortgage Solutions that it was also working on a number of initiatives which it hoped would raise advice standards across the market.. Registered in England & Wales No 05909047 and whose Registered Address is 19, Eventus, Sunderland Road, Cambridgeshire, PE6 8FD. The mortgage must either be repaid before you apply, or at the time the equity is released by using these funds to clear the outstanding mortgage. When you're looking at equity release plans or companies, look for schemes that are approved by the Equity Release Council (ERC). This ensures you will never have to pay back more than the amount that is received from the sale of your home, as long as the terms and conditions of the mortgage are being met. The council has recruited Lorraine Cox as membership and business development manager. The Equity Release Council has expanded its senior ranks to support the trade body’s growing membership. A nother means-tested benefit affected by equity release is council tax … We recommend lifetime mortgage products with a ‘no negative equity guarantee’. Council tax reduction. If you are interested in equity release after considering other options, make sure you get the best possible advice before taking out a product. We'll also take into account: whether you followed Equity Release Council advice; whether you clearly explained the arrangement and the customer understood what they were agreeing to; how the customer used the money they borrowed The Equity Release market has been a rapidly growing market in England with record amounts released last year (£1.6 billion) and a record number of 22,500 taking out an equity release scheme in 2015. My 80-year-old widowed Mother-In-Law purchased the property outright in 2002 and lives off the basic state pension. Equity release has become an increasingly common way for homeowners across the UK to fund their dreams in later life. Thanks to the Equity Release Council, the industry is a much better-regulated and more customer-friendly place, with clear guidelines for Product Standards and Professional Standards to protect you against sharp practice. ... You should choose a product from a company that is a member of the Equity Release Council. Access Equity Release is a trading name of Your Mortgage Decisions Ltd who are authorised and regulated by the Financial Conduct Authority FRN 459763. The loan, along with any interest, is normally repaid when you die or move into long-term care. While equity release products are for life, it’s still possible to switch to a different provider, just as you’d do if you were to remortgage a traditional mortgage. It's only available to older homeowners. Your solicitor will arrange this for you, therefore removing the need for you to pay the funds directly to your mortgage provider. Mortgage Conduct of Business rules make specific provisions about lifetime mortgages and home reversion plans. Switching equity release providers . Please take note. An equity release mortgage is when you use the value of your home to generate a cash lump sum, or a regular income. What is Equity Release? A lump sum lifetime mortgage is essentially a loan that’s secured against your home, giving you access to a … You can repay equity release early, the most popular plans being lifetime mortgages, but depending upon the lender, the type of plan and when it started, early repayment charges could apply. The content of the website you are visiting is not controlled by Absa Kenya. You borrow money secured against your home. 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