Equity Release Vs Homewise

Fishtel

Hi all, this is my first post so will keep short.
It's that time of life and we are looking at options for our future. We are definately downsizing and looking to free up some equity to help our son.
We are looking at using Homewise for the next purchase or Equityrelease on future purchase.
I have done some reading but too much to take in and probably need to speak to a Financial Advisor ?
If I Have read about Homewisecorrectly they are not regulated by the FCA whereas Equity release is.
Also I get the impression that you loose 10% of the equity in your property with Homewise ?

Any feedback appreciated.

misselainei

Did you get any advise on Homewise or an equity release? I am trying to find the same information and coming up against a brick wall. Elaine

waningsleep

Be very careful with Equity Release.Look at the future consequences .MSE says that your borrowings will double against your property every 13 years at 5.1%.Talk to your family first and get them to enquire before you commit.

jamesd

Best to avoid doing any business with Homewise because their advertising misleadingly claims that you can save up to 59% on your next home and "the chance to purchase their next home with a significant discount from the full market price" when the purchase is really happening at the full price and you aren't really going to be the property owner but instead "before you undertake any major renovations, you will need to get permission from the property owner". It appears that among other things you and your estate will lose all increase in value on most of the value of the property, instead of keeping all of the increase in value - but having the interest and capital to repay - with equity release.

Equity release is likely to be a much better deal as a well regulated sector.

If downsizing will achieve your objectives that's likely to be a better idea. If you're not yet 80 years old there are some normal mortgage lenders who will lend up to age 85 if you can afford the repayments.

It's also worth considering why you want to help your son. If it's debt problems there could well be better approaches.