The present day equity release scheme of UK is far different from that of the olden days. Presently, the life time mortgages and a sale of the property (whether partial or total) are regulated by the UK Financial Services Authority. This process is known as home reversion. All the lifetime mortgage and home reversion companies are regulated strictly by the UK compliance regime.

Many market advisers feel that the regulations are out of the place and are a bit of over the top. However, this has given the prospective customers a lot of peace of mind. This scheme makes sure that the customers are treated fairly and there are complaint procedures and compensation schemes placed rightly. Since the start of Safe Home Income Plan (SHIP) in 1991, the equity release schemes of UK have launched numerous innovative schemes in partnership with some major financial institutions which had built in safety measures. From October 2004, the lifetime mortgages also became regulated by the Financial Services Authority and Home Reversion schemes became regulated from April 2007.

According to the new regulations, the equity release advisors must pass the accredited examinations of the equity release schemes in order to demonstrate the competency that they have. They are monitored continuously and are required to abide by all the rules so as to develop professionally, that too continuously. This continual professional development would help them to keep their knowledge updated. Companies that offer the regulated equity release products must also be authorized and regulated for conducting such a business. Therefore the market for the equity release schemes in UK is monitored with hefty fines. If the company does not abide by the regulation then there is a possible disqualification. The SHIP can also disbar members and also fine them if they do not adhere by the code of ethics.

The financial advisers must demonstrate that they have their terms of business issued. They must also disclose their work and payment procedures before any advice that they offer. They must also document the answers to all the questions documented by the client fact find to showcase the fact that they have gathered information to give the required recommendation.

The home reversion schemes are not as popular as the life time mortgages to release equity in house. This involves the selling of your property partially or totally. The capital that is released is much less than that of an independent valuation. You will be given a tenancy for life which is rent free. The home reversion equity release schemes UK represent only a minor fraction of the total equity release plans in the entire UK.

The home reversion investment companies offer a huge cash amount based on the valuation of the property. Some such companies provide you with the option of paying you an extra amount if there is a premature death in the family or if you wish to vacate the property early and move to residential care.

You can always analyze both the equity release options so that you can benefit from the best amongst them.