Portability - a moving equity release issue
Given that house prices are still falling and are likely to continue to do so, it is becoming more apparent that you will need to tread very carefully when considering the right equity release product for your client’s circumstances – especially if they need to move after a fall in house prices.
You may want to start by scrutinising lifetime mortgage companies’ terms & conditions on portability. These are heavily dependent on a number of financial factors, including house price inflation. The upshot is clear – there is a real likelihood of there being no guarantee your client can move later on.
Happily for you, home reversion plans are not affected in the same way. Check the T&Cs of our Property Plans for instance, you’ll find we become joint owners of the property with your client – allowing us to more readily transfer our relationship to another suitable property if they need to move.
Check out the facts on each equity release plan before recommending. It’s the TCF thing to do.
If you find these tips helpful or if you have any interesting equity release case studies using Retirement Plus products, we’d love to hear from you - please email us at marketing@retirement-plus.co.uk or call Kate on 020 7907 8599.