Equity Release Scams to Watch Out For
As the population continues to age, more and more people are looking for options on how they can keep their homes or downsizing. One of those options is equity release. Equity release companies help you use your home as collateral to get a loan that will provide you with income in retirement. There are many different types of equity release companies but there are also some equity release companies to avoid!
A lot of times, these companies will charge a high amount for the equity release. This can be as much as 20% interest and £3000 upfront fees! If you are looking to get an equity release loan, make sure to do your due diligence on different options before settling into one particular company.
There are also some types of lenders that have been known to sell off people’s information without their knowledge. They use this data in order to market mortgages and personal finance products directly towards them – often with false information about how they would qualify for a certain type of equity release.
The third type of equity release company to avoid is one that charges high upfront fees. In order to avoid these types of equity release lenders, it is important to do your research on different options before settling into a particular company. This can be done by evaluating the costs associated with each type of lender, what their terms are like and how they might affect your finances in the future.
It may also help to talk things over with family members or friends who have experience dealing with this topic – such as someone who has had an equity release loan recently- for more information about which providers would work best for them.