The Irish Financial Regulator has published a new version of its booklet on equity release schemes.

This follows the introduction of new legislation that requires all types of equity release firms to be authorised and regulated by the Financial Regulator.

Prior to February 2008, only some providers of lifetime mortgages were regulated by the Financial Regulator. Following the introduction of the new legislation, providers of home reversion schemes now come under the Regulator's remit.

The new equity release booklet explains that, since 1 May 2008, any firms offering home reversion schemes or lifetime mortgages must be regulated, and must also meet the conditions of the statutory Consumer Protection Code.

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Consumer Director, Mary O'Dea, said that this will give consumers of these products the opportunity to weigh up the costs, risks and benefits of an equity release product before deciding if it is right for them.

"It is important that people understand what they are getting into. There are a number of issues to consider, such as: What are the full costs? Will I be selling part of my home? How will it affect my future needs, like long-term care? It's a lot to think about. But, now that providers of both home reversion and lifetime mortgage schemes must be regulated and comply with the Code, consumers are better protected and can make an informed decision, armed with all the information they need."

She also said that it is important for consumers to note that lifetime mortgages and home reversion schemes are two very different types of equity release product, each with their own set of advantages and disadvantages.

(CD/JM)