When it comes to choosing the best equity release deals always shop around on the various equity release websites on the internet. Another source of information and practical help would be from an independent equity release adviser who can research the whole of the market for you to find the best equity release deal for you.
Current offers in this marketplace could include a free valuation, specially reduced interest rate or even a cashback from the lender upon completion of the whole process which is payable to the applicant.
However, before entering into any equity release mortgage your independent adviser should always consider the alternatives as part of his fact-finding process. Equity release schemes should always be consider lending of the last resort.
Therefore issues such as the option of moving to a smaller or cheaper home should be considered. This will allow you to use the capital you have raised and will cost less in terms of moving expenditure in comparison to equity release charges and the interest therein. If moving is not a viable option for you, you can discuss other options with the family which will avert unnecessary surprises to your family members, ideally, allow them to suggest other viable options such as a tenant or seeking whether any state benefits have been missed.
There are numerous equity release schemes currently available, which make it hard to find the best one alone, hence the need to engage an independent specialist in the process. On the other hand, you also need to take caution as you choose the provider and ask for their opinion on welfare benefits as well as what you are entitled.
Ensure that they are familiar with all long-term care funding aspects, which may be relevant in future. Remember that getting the wrong advice can be very expensive, hence the need to understand all the relevant issues and get the best outcome.
You will also need to ask your financial adviser on the fees paid in order to set up your equity release, which should aim to give you good value for your money. Ensure that you borrow only as much as you need to use or give away, since you will earn less from the cash you leave on deposit in comparison to the interest against which you will be borrowing to begin with. This may cut down your mean tested benefits also so be careful.
Alternatively, consider a drawdown plan that will offer a cash reserve which will allow you to withdraw the cash in stages, over time, as and when you will need the cash. The most important of all, is ensuring that you have a clear goal before you get into the plan, which the equity release adviser will discuss with you and seek all the best options in order to find your best equity release deal.