What's more to it...
The equity release market has given politicians and lawmakers many pragmatic solutions encompassing a variety of socio-economic challenges.
The industry continues to show a sustained period of growth, and it has gained powerful interests from the media and consumers throughout 2020; Its establishment noted by various financial service household names in the market.
Who Are The Equity Release Council Members?
The Equity Release Council stands with support from the framework of contributors primarily drawn from within the membership that have deep insight and experience concerning the sector and the surrounding socio-economic environment.
Articles of Association by the Equity Release Council ensure that appointed directors of the Main Board of the Council maintain the responsibility of managing its operations.
To have a better picture:
Currently, there are nine members handpicked from within the Council membership, serving on a cycle of two-year office terms.
There are also four other directors appointed by the one’s elected to manage the running of the Council; including the Chairperson, the Chief Executive Officer, the Board of Standards chairperson, and the Chief Operating Officer.
Rules of the Equity Release Council
The rules of the Equity Release Council assert that you and your partner may both live on your property for the rest of your lives, or until you move into permanent care. You also reserve the right to transfer the equity release plan to another property without having to pay financial penalties.
What's a "No Negative Equity Guarantee"?
The most popular equity release plan; a lifetime mortgage only permits you to repay interest on the exact amount you borrowed. Thus, the longer you live, the more the interest grows by compounding.
As a result...
Releasing a lifetime mortgage may depreciate the value of your estate and also affect your eligibility to entitled benefits. Speaking to your trusted advisers at SovereignBoss will allow you to understand the effects of an equity release on your current status before you proceed with signing any contracts.
The good news is:
Thanks to the No Negative Equity Guarantee, you’re assured that the amount of the mortgage you release, alongside any accumulated interest, will not rise above the total value of your home. Your protection remains certified even if there is a downturn in the equity housing market, which causes the value of the house to decline. An event that may make the amount for the mortgage rise higher than the amount it may sell when it’s time to repay.
To add to that:
The No-Negative-Equity Guarantee also ensures that you don’t leave behind the liability of any lifetime mortgage or home reversion debt for your beneficiaries after you die or move into permanent care.
The Financial Conduct Authority: Regulating Advice
Regardless if it’s a lifetime mortgage or a home reversion plan, every equity release adviser and broker operates under regulating guidance of the Financial Conduct Authority (FCA). The body of authority which enforces the rules regarding what equity release providers need to tell every client about their services.
According To Nigel Waterson; the former coordinator of the Equity Release Council:
You must speak with a qualified adviser, one who belongs to the Equity Release Council.
The professional advisers at SoverignBoss will provide you with the right guidance on how to consider all your options before selecting an equity release plan.