There is so much to consider with Equity Release, and you may be wondering just how to proceed. The best thing is to arm yourself with information, including understanding how different Financial Advisors work. Here is a guide:
TYPES OF ADVISOR
People often say that here are basically two types of financial advisor; an independent financial advisor (IFA) and a tied advisor. However, this really is an oversimplification and things have actually changed recently. There are more than just two types of advisors, now, as there are also “multi-tied” advisors who have several product providers that they can recommend.
The rules on who can call themselves an IFA have also changed and they must now offer you the option to pay by fee.
IFAs can choose from the whole of the market place when giving you advice. They are usually able to work in a wider variety of areas than a tied advisor and can select products from any supplier they deem suitable. Tied advisors usually work for a company, such as a bank, and will recommend only products that their company sells. This may not be the most competitive one in the market place and they may even not be able to advise you about your area of need at all. For instance, a bank set up to give mainly investment advice is unlikely to be able to help you buy an annuity when your pension matures.
It becomes much more complex than this, though, because Financial Advisors are finding it harder to be a “generalist” who can help anyone with just about anything. More often, they tend to concentrate on specific areas rather than trying to be a jack of all trades. There are no less than 48 Financial Advisor Qualifications comprising of various letters, numbers and titles from a variety of Institutions and Societies.
I hope that this information proves useful for you.