What Does MoneySavingExpert Think About Equity Release in 2024?

Money Saving Expert provides detailed insights on equity release, emphasizing cost-effective strategies and the importance of considering interest accumulation and inheritance impacts. We highlight the necessity of exploring all alternatives before proceeding with equity release plans.
  • Last Updated: 09 Apr 2024
  • Fact Checked
  • Our team recently fact checked this article for accuracy. However, things do change, so please do your own research.

Contributors:

Francis Hui
Do You Want to Learn About Equity Release From Money Saving Expert? Find Out Here if Money Saving Expert Can Help You Answer Any Equity Release Questions You May Have. Read On...
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Key Takeaways
  • MoneySavingExpert suggests looking beyond equity release to potentially save big and considering other ways, like refinancing or downsizing, over lifetime mortgages or home reversion.
  • While they don’t completely rule out equity release, they stress fully understanding equity release’s compound interest rates and what it means for your home’s value over time.
  • For the best outcome, chat with a financial advisor first to get the full picture, weigh up inheritance impacts, and check out alternatives like unsecured loans or government grants for a financial boost without dipping into your home equity.

If you are a retiree looking for excellent financial and equity release advice, you may want to look into Money Saving Expert.

Make sure you do not get caught and pick an unscrupulous lender because this could potentially cost you money in the long run. 

We are here to point you in the right direction and ensure you have all the relevant facts to choose the best provider for your needs.

In This Article, You Will Discover:

    Our economic experts work tirelessly to bring you the most up-to-date market information about leading providers. That way, you have the facts to help you make an informed decision.

    Therefore:

    NOTEEvery Investor is an impartial and unconnected third-party information provider via this website, and the details replicated in this commentary represent the opinions of Every Investor only and may not reflect the views or opinions of Money Saving Expert. This article must not be interpreted as advice, nor is it a solicitation to conduct transactions in any financial product provided by Money Saving Expert.

    Who Is Behind Money Saving Expert and How Can It Help You?

    Founded by Martin Lewis, Money Saving Expert offers guidance on financial decisions, including equity release schemes.

    Who Is Money Saving Expert?

    Money Saving Expert is one of the top consumer websites in the UK and focuses on helping it’s users cut their costs and bills.

    The site has more than 16mln visitors1 monthly who turn to Money Saving Expert to find out where to find great deals, how to save on bills, and how to fight for their economic rights.

    Money Saving Expert was founded in 2003 by Martin Lewis, a well-known financial journalist. The site joined the MoneySupermarket Group in September 2012 and secured it’s future.

    Why Should You Consider MSE for Your Equity Release?

    You can consider Money Saving Expert because the advice it provides is reviewed by leading journalists and is widely trusted by it’s followers.

    Furthermore, Money Saving Expert claims that financially sophisticated users could save 25% of their income monthly by following its tips and advice.

    The site has won multiple awards, which include2:

    • Most Useful Website of The Year 2003.
    • Bradford & Bingley Personal Finance New Media of the Year (2005).
    • 2010 Hitwise Award for best business information website.
    • Brand of the Year in 2018 from Drum Online Media Awards.

    The accolades and equity release awards speak for themselves and are just some of the many reasons you could consider Money Saving Expert.

    What Does Money Saving Expert Teach About Equity Release?

    MSE educates on the nuances of equity release, including benefits, risks, and how to choose the best scheme for your needs.

    What Is an Equity Release Scheme According to Money Saving Expert?

    Homeowners aged 55 or older can opt for an equity release scheme to financially benefit from their property’s value.

    It’s a route to access home equity without disposing of the asset.

    Equity release’s distinct feature is its ‘no immediate repayment’ structure.

    The total amount, with interest, is paid from the house sale, typically post the owner’s death or care admission.

    What Is the Best Way to Release Equity According to Martin Lewis?

    The most effective way for money-saving experts to release equity is through home equity loans or home equity lines of credit (HELOCs).

    These options allow homeowners to tap into their property’s value, converting equity into cash for investment or expense purposes.

    Remember to borrow responsibly and understand the terms of the loan, thereby ensuring our financial stability.

    Alternatively, consider a reverse mortgage, especially if you’re a senior homeowner.

    In this setup, the lender pays you a regular income or a lump sum, allowing you to stay in your home while converting your equity into ready cash.

    This strategy can be excellent for achieving financial flexibility, but be sure to consult with a financial advisor first to ensure it fits your long-term plans.

    What Is MSE’s Advice on Equity Release Schemes?

    Money Saving Expert does not offer equity release schemes.

    The site offers information and general advice on equity release and the schemes available.

    Equity interest rates start from 5.25% to 6.30% AER*.

    You can view the most recent equity release rates here.

    *While we regularly review our rates, these may have changed since our last update.

    What Are the Risks of Equity Release? MSE’s Safety Measures and Advice

    While equity release offers financial flexibility for older homeowners, Money Saving Expert advises awareness of the associated risks.

    Key concerns include the erosion of the property’s value for inheritance, the accumulation of interest potentially consuming the property’s equity over time, and the impact on means-tested benefits.

    MSE recommends thorough planning and consultation with financial advisers to mitigate these risks.

    Additionally, MSE advises choosing lenders approved by the Equity Release Council, which guarantees a ‘no negative equity’ policy, ensuring borrowers will never owe more than their home’s value.

    How to Qualify and Find Providers for Equity Release: Insights from MSE

    MSE outlines eligibility criteria and application steps for equity release, simplifying the process for homeowners.

    What Are the Eligibility Criteria for Equity Release According to Money Saving Expert?

    Eligibility for equity release schemes, as outlined by Money Saving Expert (MSE), primarily depends on the applicant’s age, typically over 55, and the property’s value.

    MSE emphasizes that the property should be in good condition and located in the UK.

    Certain lenders may have additional criteria, such as a minimum property value, which often starts around £70,000.

    Money Saving Expert advises potential applicants to also consider their plans for inheritance, as equity release can significantly impact the estate’s value left to heirs.

    How Can You Apply for Equity Release Through MSE? Steps Explained

    Applying for equity release through Money Saving Expert involves several steps, starting with research and education on the topic through MSE’s comprehensive guides.

    MSE recommends using their comparison tools to find the best deals and then suggests consulting with an independent financial adviser who specializes in equity release.

    The process further involves choosing a plan that fits your financial needs, completing a property valuation, and going through legal advice to understand the terms and conditions before finalizing the deal.

    MSE provides resources and tools at each step to assist consumers in making informed decisions.

    MSE’s Information Resources on Equity Release and Lifetime Mortgages

    Money Saving Expert does not offer equity release, as it is not a financial institution.

    However, the site reviews equity release and offers advice on releasing equity in its articles and on a dedicated forum.

    What is more, the site advises you to speak to an adviser and pick a lender approved by the Equity Release Council.

    Money Saving Expert can give you information that may help you choose the best equity release company for you or a specific equity release product.

    Understanding the Financial Aspects of Equity Release: Guidance from MSE

    MSE provides insights into interest rates, fees, and financial implications of equity release, helping users make informed decisions.

    What Are the Current Equity Release Interest Rates? MSE’s Calculator Tools Reviewed

    Money Saving Expert provides updated insights on equity release interest rates, noting that rates can vary significantly depending on the lender and the type of plan chosen.

    As of the latest review, interest rates for lifetime mortgages, the most common type of equity release, start from around 2.5% but can be higher based on the loan’s specifics.

    MSE’s equity release calculator tools offer users a way to estimate the potential costs of releasing equity from their homes, taking into account the compound interest effect over time, thereby enabling homeowners to gauge the financial implications of their decisions.

    nderstanding Equity Release Fees: Insights from Money Saving Expert

    Money Saving Expert is a free consumer website, and you can sign up for its weekly email with cost-saving tips at no charge.

    What Are the Common Complaints About MSE Equity Release?

    To lodge a complaint with Money Saving Expert, you can send your complaint via email to the following email addresses:

    If you are not satisfied with your complaint’s feedback, you can refer it to the financial ombudsman at enquiries@financial-ombudsman.org.uk 

    The Reliability of Equity Release Information Provided by MSE

    With comprehensive reviews and case studies, MSE proves its reliability and trustworthiness in offering equity release advice.

    How Did We Review MSE Equity Release Information?

    We spent many hours researching and unpacking the information on Money Saving Expert and then presenting them to you in this easy-to-read article.

    NOTE: This article is an unaffiliated, third-party, independent review of Money Saving Expert and / or Martin Lewis.

    What Do Customer Reviews Say About MSE Equity Release?

    Here are some reviews on Money Saving Expert:

    How Have Others Benefited? Explore Case Studies of Equity Release with MSE

    Money Saving Expert showcases several case studies where individuals have successfully utilized equity release to enhance their retirement lifestyle, pay off existing debts, or fund major life events.

    One highlighted case involves a retired couple who used a lifetime mortgage to renovate their home and support their grandchildren’s education, without the need for monthly repayments.

    These real-life examples illustrate the flexibility and potential benefits of equity release, as well as the importance of tailored financial advice to ensure that the decision aligns with personal and financial circumstances.

    MSE’s Role in Providing Equity Release Information: An Overview

    MSE is regulated and offers clear contact details for equity release queries, ensuring transparency and accessibility for users.

    What Are the FCA Details for Money Saving Expert Equity Release?

    The Financial Conduct Authority (FCA) details for Money Saving Expert’s equity release services would include their FCA registration number and any specific permissions or regulations they adhere to when providing equity release advice or services.

    Since Money Saving Expert (MSE) primarily offers information and guidance rather than direct financial services, their specific role may involve directing users to FCA-regulated lenders or advisors for equity release products.

    For precise and up-to-date FCA details, it’s advisable to visit the official Money Saving Expert website or the Financial Conduct Authority’s online register.

    What Trading Names Does Money Saving Expert Use for Equity Release?

    • MoneySavingExpert.com
    • MoneySavingExpert.com Limited

    Which Regulators Approve MSE for Equity Release?

    The Financial Conduct Authority (FCA)3

    What Are the Registration Numbers for MSE Equity Release?

    • FCA Ref Number: 587302
    • Companies House Number: 03157344

    How to Find MSE’s Equity Release FCA Link?

    How to Access Reliable Equity Release Information Through MSE

    • +44 203 846 2796.  
    • furtherhelp@moneysavingexpert.com
    • One, Dean Street, London, W1D 3RB.

    Common Questions

    How Does Money Saving Expert Recommend Approaching Equity Release?

    How to Use Equity Release According to Money Saving Expert?

    What Does Money Saving Expert Say About the Pros and Cons of Equity Release?

    What Are Money Saving Expert's Tips for Equity Release?

    How Does MSE Explain Equity Release for Seniors?

    Is Money Saving Expert a Recognized Member of the Equity Release Council?

    Who Is the Owner of Money Saving Expert?

    How Can I Apply for a Job at Money Saving Expert?

    Is Equity Release Available Through Money Saving Expert?

    In Conclusion

    If you are considering sourcing information about equity release and want to do some market research, then Money Saving Expert’s equity release information is an excellent place to start.

    Money Saving Expert runs an equity release discussion forum where consumers can share equity release info and stories.

    We always recommend that our readers seek financial advice from an accredited adviser before making any decisions.

    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.

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