When shopping for equity release schemes online, as with any service offered through the internet, you might think it would be better value to go direct to the lender. Surely it makes sense that cutting out the middleman must cut out the costs that will come to you in the long run. Right?
Shopping Direct is not always what it seems
While going direct might be a cheaper option in some cases, this is not necessarily true when it comes to something like equity release? We see adverts on television all the time from companies telling us they are cutting out the middleman and passing the savings on to you, the customer. But in fact you will get a far better deal through an independent advisor such as ERsupermarket than you could through Aviva Direct.
Aviva has in recent times been the only lender with their own dedicated financial advisory team, but as of 1st July 2013 this will no longer be the case. While they will still be operating as a lender, offering some of the best equity release deals on the market, now getting those deals through an independent broker will become a formality.
The benefits of independent advice
The fact is that releasing the equity in your home can be a wonderful way to free up money to make the most of your retirement. But you cannot go it alone. The FCA has ruled that expert advice must be given. And while you can get this advice from a direct sales team such as Aviva Direct, they are always going to be pushing you towards their own products.
Independent companies such as Equity Release Supermarket have experts who have worked in the equity release market for years. Rather than just trying to sell you their own deals they have knowledge of the entire industry. They can take a look at your needs and situation and get you the best possible deal from the whole market. This competition then keeps the market full of excellent deals that mean you can get more for your money.
Plus, as their fees are fixed you don’t have to worry about extra costs being bundled with your long term payments. Direct equity release sales teams will have to make up their own operating costs, meaning their rates will be higher. When a lender accepts their business through an independent then they can avoid those costs and offer far better deals.