Beware of the Risks of Equity Release

Summary


MONEY MATTERS Peter McGahan looks at raising finance on your home Releasing equity from your property has its risks. Many homeowners are often marketed this option as an easy way to put cash in their bank account, yet for many it is the most expensive way to do that.

The Financial Services Authority (FSA) is also worried about products that are marketed as no cost or low cost. Everyone interested in equity release needs to be fully aware that their home is at risk. Whilst equity release can be a good idea, it will only be so if homeowners go in with their eyes wide open.

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Extract


Beware of the Risks of Equity Release

I'll mention some important risks and tips in a moment, but initially I would echo the FSA's concerns. The regulator has mentioned a plan called Crossroads, which is offered by a co...

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