What to Look for in an Equity Release Adviser

Start with the regulation, not the rate

Equity release is one of the largest financial decisions you will ever make, so the person guiding you through it matters at least as much as the product they recommend. Anyone advising you on a lifetime mortgage or a home reversion plan in the UK must be authorised by the Financial Conduct Authority. Before your first proper meeting, look them up on the FCA register and check the permissions listed — a firm that arranges ordinary mortgages is not automatically able to advise on later-life lending.

It is also worth asking whether the adviser, and the firm they work for, are members of the Equity Release Council. Membership commits them to a set of standards that protect you: a no negative equity guarantee, the right to stay in your home for life, the right to move to a suitable property, and the option of fixed or capped interest on many plans. A good adviser will mention these unprompted. If you have to drag them out of them, that tells you something.

Independent or restricted? The difference matters

Ask directly: "Are you whole of market for equity release, or restricted?" A whole-of-market adviser can recommend plans from across the lending market. A restricted adviser can only offer products from a limited panel or a single provider. Neither is automatically wrong, but you are entitled to know which one is sitting in front of you, and why that suits your circumstances.

Then ask about experience. How many equity release cases do they complete in a typical year? Do they hold a specific later-life lending qualification beyond the standard mortgage exams? Do they handle both lifetime mortgages and home reversion plans, or only one? You want someone who does this regularly, not occasionally.

Ask about every fee — and when it is payable

Fees vary widely and are the single most common source of surprise. Go through them line by line before you commit to anything.

• Advice fee — often a fixed sum, sometimes a percentage of the amount released. Ask whether it is payable upfront, on application or on completion, and whether any portion is refundable if you decide not to proceed.
• Arrangement and completion fees — charged by the lender, and frequently added to the loan rather than paid in cash. Remember that anything added to the loan attracts compound interest.
• Valuation fee — some lenders cover this, others do not. Ask which applies to the plan being recommended.
• Legal fees — you will need your own solicitor, and most lenders also require you to pay their legal costs.
• Ongoing charges and early repayment charges — these matter if your plans change in five or ten years' time.

Ask plainly: how much will I pay in total, and how are you paid? An adviser who receives commission from the lender as well as a fee from you should be happy to confirm that in writing. If the answer feels evasive, get a second opinion.

Later-life lending rules you should hear explained

A competent adviser will walk you through the mechanics without being asked. Listen for clear explanations of:

• Compound interest. Ask for the projected balance in 10, 15 and 20 years' time, not just today's figure.
• Drawdown versus lump sum. Taking money in stages can reduce the interest that builds up, but only if it suits how you actually need the cash.
• Fixed, capped or variable rates, and what happens if rates move.
• Portability. If you want to move house, can the plan move with you, and on what terms?
• Joint plans. If you have a partner, what happens when one of you dies? The survivor should not be forced to sell.

Also ask how the money will affect anything means-tested you receive, such as Pension Credit or Council Tax Reduction. Releasing equity can change your entitlement, and a good adviser will flag that rather than leave you to discover it later.

Alternatives deserve a proper conversation

Equity release should be a considered choice, not a first resort. Before you sign anything, ask what else might work: downsizing or moving to a cheaper area, a retirement interest-only mortgage, using savings or investments, help from family, or simply claiming benefits you are already entitled to but not receiving.

For some people, equity release is genuinely the best answer. For others, a smaller, cheaper solution has been sitting under their nose for years. A reputable adviser will welcome these questions and talk them through honestly. One who brushes them aside and steers you straight towards a lifetime mortgage is worth walking away from.

Bring the family in before you sign

Talk to your children, or to someone you trust, before committing. Equity release usually reduces what you can leave behind, and families cope far better with that when they have been part of the conversation from the start rather than hearing about it afterwards.

Take your time. You will normally have a cooling-off period after completion, but it is far easier to ask questions beforehand than to unpick a plan later. Request the written suitability report, read it slowly at home, and consider a second opinion from a different adviser or a solicitor who specialises in later life. There is no prize for deciding quickly — only for deciding well.