Demystifying equity release schemes
11 May 2004
The Financial Services Authority will now regulate schemes that allow homeowners to cash in on the value of their property.
The move follows an announcement yesterday by the Treasury that home reversion schemes are to be centrally regulated. It is hoped this will lead to an improved level of protection for people taking out these products.
Independent Financial Adviser Promotion, however, worries that many will be unclear if it is the correct move for them.
As a result the company has produced a guide, "Equity Release - Unlocking money from your home", which is available to all free of charge.
IFA Promotion, which was established in 1989 to promote the value and accessibility of independent financial advice to the public, hopes the guide will demystify equity release plans by looking at the potential benefits and pitfalls of such schemes.
It addresses a number of essential questions, such as, "how do equity release plans work?"; "what are the different schemes available?"; "how might this affect my family?"; "what are the alternatives and benefits?"; and "where should I go for advice?"