Consulting the best equity release brokers could mean the difference between making a financially sound decision, rather than a regrettable one. 

Over £700m was unlocked through equity release from July to September 2023.¹ With so much money at stake, professional advice is crucial to ensure the best decision for your situation.

Our specialists at EveryInvestor have conducted thorough research to provide insights into the crucial role a broker plays in your equity release journey. 

Read on to find out more.

What Is Equity Release In England?

Equity release is a financial product catering to homeowners, typically aged 55 and above, allowing them to unlock the cash value tied up in their property without the need to sell.

This is achieved through plans like home reversion, or lifetime mortgages, offering a way to supplement retirement income or fund various financial needs.

Learn More: Equity Release in the UK

What Is An Equity Release Broker?

An equity release broker is a specialist who helps homeowners over 55 unlock the cash tied up in their property.

They guide you through the maze of equity release products to find the one that fits your needs.

Working with a broker means getting access to exclusive deals not available directly to the public.

They also ensure that the equity release plan you choose is safe and matches your financial situation, offering peace of mind.

Finding the Best Equity Release Broker

Equity release is a complex and specialised lending area that requires expert advice from qualified brokers who can help you plan your retirement effectively.

A good broker can help you find the most suitable and competitive equity release product for your needs, and guide you through the process with ease and confidence. 

But how do you find the best broker for you? 

You can do your own research, by looking for brokers who are FCA-registered and are members of the Equity Release Council. 

You can also ask for recommendations from friends or family who have had previous experience releasing equity. 

Once you have a shortlist, you can contact the brokers and get a free initial consultation and a no-obligation quote from them. 

Finding the best equity release broker may take some time and effort, but it can save you money and hassle in the long run.

Key Qualities to Look For in a Broker

Not all mortgage brokers are qualified or authorised to deal with equity release. 

You should look for a professional who has the following credentials:

• FCA Registration Assurance: Holding an FCA² registration signifies that the broker operates under the stringent regulations and ethical codes of conduct set by the Financial Conduct Authority, ensuring trustworthy and compliant service.
• Commitment to Equity Release Council Standards: Membership in the Equity Release Council³ guarantees that your broker upholds the council’s rigorous standards. This includes providing transparent and honest information, ensuring access to independent legal advice, and offering equity release products with a no-negative-equity guarantee for your financial safety.
• Impartiality: An independent broker offers impartial and comprehensive guidance, free from any obligations to specific lenders or products. This independence ensures that the advice you receive is solely focused on your best interests.
• Clarity in Communication: Effective communication is key. A proficient broker will articulate the advantages and potential drawbacks of equity release in a clear, easy-to-understand manner, ensuring you are well informed and comfortable in making decisions. They are also equipped to address any queries you might have, simplifying complex financial concepts.

What Role Does a Broker Play in Your Equity Release Journey?

A broker is essential in your financial journey, serving as both a knowledgeable guide and a trusted advisor. 

They possess expertise in the intricacies of products like lifetime mortgages and home reversion plans, ensuring these financial solutions align perfectly with your specific needs and future goals.

Let’s take a closer look at what they can do for you. 

Help You Find the Best Plan For Your Needs

A skilled broker will thoroughly examine your current situation and future financial objectives. 

This thorough evaluation enables them to suggest the most suitable option for you, be it within the realm of equity release or another financial alternative.

Due to the intricate nature of these products and stringent industry regulations, many lenders prefer to operate through intermediaries. 

Engaging a broker opens doors to these lenders, who might not be accessible directly but could offer more advantageous or fitting deals.

Ensure You Understand the Risks Involved

Releasing equity offers a versatile method to access the value locked in your home, allowing you to benefit from your funds during your lifetime. 

However

It is important to realise that it is a significant financial decision that could impact your estate and eligibility for some state benefits.

A responsible broker is committed to making sure you grasp all the consequences of opting for one of these plans. They will only suggest this route if they genuinely believe it aligns with your best interests.

Assist With the Application 

Applying for equity release differs significantly from the usual mortgage application process. 

Even if you have experience with buying or remortgaging a home, handling this type of application by yourself might be daunting.

Brokers offer valuable assistance by either handling the entire process for you or reviewing your completed application to verify its accuracy and completeness, including all necessary supporting documents. 

Moreover

They act as your central point of contact, efficiently coordinating communications and updates with solicitors, surveyors, and the lender. 

This comprehensive support can greatly reduce your time commitment and alleviate stress.

What Information Will Your Broker Need?

Your broker will need comprehensive information to provide tailored advice for your plan.

This includes details about your financial situation, such as income, expenses, and any existing debts. 

They’ll also require information about your property, like its value and any outstanding mortgage. 

Your future plans, particularly regarding inheritance and how you wish to use the released funds, are also important. 

Additionally

They’ll ask about your health and lifestyle, as these can influence the terms of the equity release. 

Providing complete and accurate information helps your broker find the most suitable product for you.

Brokerage Fees and What to Expect

When you use a broker, you will have to pay a fee for their advice and service. 

This fee covers the costs of researching the market, recommending the best product for your needs, and processing your application. 

The fee can vary depending on the broker you choose and the amount of equity you release. 

The typical equity release advice fee is between £795 and £895.⁴ However, some brokers may charge a percentage of the loan amount, or a flat fee that could be higher or lower than this range. 

You should compare the fees and services of different brokers before you decide to use one. 

What Are the Pros and Cons of Using a Broker?

Using an equity release broker comes with its set of pros and cons, which vary based on individual circumstances.

Pros include:

• Expert and Unbiased Advice: Brokers provide insights into equity release, evaluating your financial situation, health, and future plans to recommend the best option.
• Access to Various Products and Lenders: They compare deals across lenders, considering rates, fees, and product features, and offer options not directly available to consumers.
• Application Process Assistance: Brokers facilitate the application, coordinating with solicitors, lenders, and surveyors for a smooth process.

Cons include:

• Broker Fees: Their fees, either a percentage of the loan or a flat rate, can impact the final amount you receive or owe.
• Limited Options: Some brokers may not access all market products, potentially limiting your choices.
• Potential Bias: Not all brokers are independent, which might affect the impartiality of their advice. It’s important to verify their FCA registration, Equity Release Council membership, and independence.

Before proceeding with equity release, it’s crucial to consider these factors and seek independent financial and legal advice.

Common Questions

In Conclusion

The right equity release broker offers invaluable guidance and access to diverse financial products, balancing expert advice with the practicalities of application assistance. 

While considering factors like fees and potential biases, it’s essential to choose a broker who aligns with your needs. 

Ultimately, thorough research and independent advice are vital in partnering with the best equity release brokers, ensuring a decision that supports your financial well-being in retirement.

The features mentioned and the amounts raised, are subject to the lender’s criteria, terms and conditions. These may take into account the age, health and lifestyle factors in order to provide an enhanced amount. To understand the features and risks, ask for a personalised illustration.