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How To Find The Right

Equity Release Deal At The Best Price

STEP 2: Contact a specialist Equity Release broker
The Equity Release market is large so whereas there are probably over 150 different mortgage lenders there are only around 12 banks and finance firms offering equity release plans.

The question is how to get an overview of the market without incurring an initial charge.

It is easy to do this by talking with an Equity Release broker, but one who covers the 'whole of market'. Whole of market as its name suggests is where the broker can offer any equity release plan offered by any lender.

For example, if you contact a Building Society or bank directly (who offers Equity Release) they will only be able to sell their own products. That's never really good news and there should definitely be better (cheaper and more flexible) deals available from other lenders.

Remember, any financial deal that involves your property is likely to be the largest financial commitment of your life so it's critical you try to get the best deal available. And the only way to get top value is to shop around, but of course this will be the job of your equity release broker.

What to ask the broker
For many readers this will be their first equity release call so make it clear to the broker that you're calling for an initial chat to see what sort of options and plans are available.

Explain your personal and financial circumstances and then see what they suggest. As equity release is somewhat complex the broker might take a few days to come back with some detailed ideas.

The main aim of this exercise is to get an introduction to the current equity release market alongside some rough numbers to play around with, such as -

  • Interest rates
  • Amount of equity that can be released
  • Which Equity Release companies they recommend and why
  • General costs etc
Important: Don't be impressed by any 'Award Winning' Equity Release plans
About 10 years ago marketers realised there was power in the phrase 'award winning'.

Sadly the phrase is now almost worthless. The reason is simple, most 'awards' are issued by magazines/websites/publications (large or small) and in turn most of the 'award winners' will be good advertisers in those same magazines/websites/publications.

Common sense therefore suggests that most 'awards' are nothing more than a case of you-scratch-my-back-and-I'll-scratch-yours.

Stop Press

The February 2012 issue of Which! magazine carried a report on Equity Release including 'mystery shopper' tactics.

According to their findings the Consumer Credit Counselling Service (CCCS) offered the best advice.

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