HOME reversion schemes, which allow older homeowners to unlock part or all of the value of their property while still living in it are, as of yesterday (April 6), being regulated by the Financial Services Authority.
This welcome move is something that the Help The Aged Equity Release Service has been calling for since its inception in 2004, having been set up in response to the growing number of calls the charity was receiving from older people worried that they could be susceptible to poor advice.
Since the promise of regulation was made in 2005, inquires about reversion schemes to the Help The Aged Equity Release Service have notably increased. The fact is that, for some people, reversions may be the most suitable option and, with the popularity of this type of equity release now set to rise further, it is important the industry focuses its energies on improving the products as well as the quality of advice available.
Regulation of the whole equity release sector will go some way towards bringing increased confidence to consumers through reducing the prospect for mis-selling. However, it remains a notoriously complex area and, therefore, it's still imperative that those considering unlocking the value tied-up in their homes seek specialist and comprehensive advice and remain as rigorous and discerning as ever when making this important decision.
For further impartial information and advice on the subject, readers can contact the Help The Aged Equity Release Service on 0845 2300 820 or by visiting www.helptheaged.org.uk/equityrelease. The charity has also produced a guide to unlocking the wealth in your home which is free and available on the same telephone number.
Tym Blackwell, The Help The Aged Equity Release Service, Help The Aged, Pentonville Road, London.
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