Your solicitor will arrange this for you, therefore removing the need for you to pay the funds directly to your mortgage provider. The company has over 30 million consumers worldwide, and it provides a wide range of lifetime mortgage products. This link is being offered for your convenience and Absa Kenya is not responsible for accuracy or security of the information provided. We’re members of the Equity Release Council, adhering to their strict code of ethics. 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.. You take out a mortgage against the value of your home. Registered in England & Wales No 05909047 and whose Registered Address is 19, Eventus, Sunderland Road, Cambridgeshire, PE6 8FD. This means that, if the value of the property falls below the level of the debt, the company takes the hit and won’t pursue you or your estate for the shortfall. You can release some of the tax-free funds from your home through Key Equity Release with a lifetime mortgage, the most popular form of equity release. 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. When you're looking at equity release plans or companies, look for schemes that are approved by the Equity Release Council (ERC). Aviva Equity Release UK Limited can put you in touch with an equity release financial adviser who'll review your needs and future plans with you in person. 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. There are two different types of equity release: Lifetime mortgage; Home reversion plan; We offer lifetime mortgages, but it’s important you understand the main differences: Lifetime mortgage. The Equity Release Council is a not-for-profit organisation and is the recognised industry body for the equity release sector.. It’s own website states that it “aims to fully represent and facilitate the safe growth of the equity release market by helping to create the conditions which enable the … The Equity Release Council was set up to protect people from losing out from these schemes. 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. We only recommend a plan if we are convinced it’s in your best interests. That said, many new plans now offer fixed-term early repayment charges, making early repayment both practical and achievable 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. 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. The content of the website you are visiting is not controlled by Absa Kenya. This is the most common type of equity release. 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 recommend lifetime mortgage products with a ‘no negative equity guarantee’. A lump sum lifetime mortgage is essentially a loan that’s secured against your home, giving you access to a … This week the FCA published a review of advice in the equity release market and found significant failings, highlighting that in some cases it “was not clear that the advice was in the best interests of the consumer”. The concept of the Equity Release Council is to manage and supervise the Equity Release Industry, setting up agreements, rules and regulations … What is Equity Release? Access Equity Release is a trading name of Your Mortgage Decisions Ltd who are authorised and regulated by the Financial Conduct Authority FRN 459763. ... You should choose a product from a company that is a member of the Equity Release Council. All firms selling equity release must offer advice first. Any equity release company that has the Equity Release Council logo on their material must ensure you can still live in your home until you die or move into permanent care. OneFamily Advice is a member of the Equity Release Council. There are two main types of equity release: Lifetime mortgage. Rising house prices across the UK over recent decades means that the UK’s over-55s have more equity than ever locked up in their properties, equity that can be accessed using a Lifetime Mortgage, the most popular form of equity release. 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 Equity Release Council is urging to advisers to ‘respectfully and robustly’ challenge clients’ motivations when looking for lending solutions in its new Best Practice Guide, published today. How equity release works. Equity release is a fast-growing area of personal finance. The Equity Release Council is a not for profit organisation that is recognised as the industry body for equity release. An equity release mortgage is when you use the value of your home to generate a cash lump sum, or a regular income. Long-time follower, but first-time poster here, Can anyone possible help with some advice on Equity Release on an ex-council flat. Types of equity release explained It is imperative to maintain product safeguards while also protecting customers’ personal health and wellbeing in the current climate. In comparison to lifetime mortgage interest rates a decade ago, the interest rates are not nearly as high. My 80-year-old widowed Mother-In-Law purchased the property outright in 2002 and lives off the basic state pension. (Equity Release Council standard). Please take note. Switching equity release providers . A nother means-tested benefit affected by equity release is council tax … This is an industry body and its members agree to abide by a voluntary code of conduct. Equity Release Advice. Equity Release Council chairman David Burrowes says: “Independent face-to-face legal advice is vital to the consumer safeguards underpinning the equity release market. 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. The loan, along with any interest, is normally repaid when you die or move into long-term care. You borrow money secured against your home. You are about to leave the Absa Kenya website. 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. Equity release has become an increasingly common way for homeowners across the UK to fund their dreams in later life. No Negative Equity Guarantee As a member of the Equity Release Council, we offer a 'No Negative Equity Guarantee'. We closely adhere to the Equity Release Council’s high standards of conduct and practice in providing and advising on equity release products. When you sign up for equity release, you either borrow money against the value of your home or sell a share in it to a company in return for the right to continue living there. It's only available to older homeowners. The product has a “no negative equity guarantee”. The consultation is a FREE no obligation meeting, face to face with our adviser and will allow us to understand your unique situation and possibly make a recommendation to you. Typically, this generates a lump sum that you can use to spend in any way you see fit. Members of the Equity Release Council, which represents around 90% of the market, attach a ‘no negative equity’ guarantee to the plans they sell. Mortgage Conduct of Business rules make specific provisions about lifetime mortgages and home reversion plans. Moving house after equity release Equity release products should allow you to move to a different property, so … 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). This is not the same as a retirement interest-only mortgage. The Equity Release Council points out that equity release is one of the most regulated financial products in the UK and the industry is regulated by the FCA. 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. However, we recognise these are unprecedented times where acting in the best interests of consumers’ health … All Equity Release Council providers are bound by a strict code of practice, which states the following: All customers can stay in their property until the end of the mortgage term (when the surviving borrower dies or moves into long-term care). In later years there are many reasons why a homeowner might want to release a lump sum from their property. Council tax reduction. If our lifetime mortgage is right for you, they'll be able to give you a personal illustration and highlight the benefits, as well as the costs and risks. The Equity Release Council has expanded its senior ranks to support the trade body’s growing membership. The council has recruited Lorraine Cox as membership and business development manager. 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 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. 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. 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. These may be onerous, making it unrealistic to get out of equity release early. Worldwide, and it provides a wide range of lifetime mortgage to lifetime mortgage interest rates a decade ago the... 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