Is Equity Release right for you?
Whole of Market
Our Equity Release advisers will compare the entire market on your behalf and report back to you, with the best options based on your individual circumstances
Key Points
You will recieve a Key Facts documents about any product that is recommended, as well as a details demands & needs case summary which will outline the advice given by the adviser
Competitive Rates
Our team of advisers will find you the best rates available on the market. They will tell you exactly what your estate will need to pay back based on the amount of equity you want to release
Your Castle
Remain in the property you love, whilst maintaining the quality of life you deserve – choose from either a lump sum or a regular income with various options available for both – try out Equity Release Calculator.
How does Equity Release work?
Equity release allows you to release cash from your property without the upheaval or expense of moving home. To be eligible for one of these plans, you need to be a UK homeowner aged 55-95. The money you release can be spent in any way you like and, what’s more, there are typically no monthly repayments to make. And there’s no need to worry about the longer term: you can stay in your home for life, or until you decide you want (or need) to move.
There are many equity release plans on the market, so it’s vitally important to seek independent, expert advice from a company that will compare the whole market to find the right deal for your circumstances. Compare your options with our Equity Release Calculator & an adviser will be in touch to discuss your options.
Lifetime Mortgage
You take out a mortgage secured on your property provided it is your main residence, while retaining ownership. You can choose to ring-fence some of the value of your property as an inheritance for your family. You can choose to make repayments or let the interest roll-up. The loan amount and any accrued interest is paid back when you die or when you move into long-term care.
Home Reversion
You sell part or all of your home to a home reversion provider in return for a lump sum or regular payments. You have the right to continue living in the property until you die, rent free, but you have to agree to maintain and insure it. You can ring-fence a percentage of your property for later use, possibly for inheritance. At the end of the plan your property is sold and the sale proceeds are shared according to the remaining proportions of ownership.
Lifetime Mortgage Comparison
When considering a lifetime mortgage, there are many aspects of the agreement to consider.
- How much equity do you actually need? interest will quickly build up, so the less you borrow now, the more will be left to your estate in your will.
- Use an Equity Release Calculator to find out what options may be available to you.
- Do you need to take the money all at once? you can agree a total borrowing facility and only take part of the loan, you will therefore only start paying interest on the funds you have actually been paid.
- Do you want the equity to be paid in one lump sum, or as a monthly income?
- Have you discussed this options with your family? make sure they are comfortable with your plans.
- Have you explored all other options first? if you are looking to increase your monthly income, it may be better to try and reduce your outgoings first. One very large cost is insurance. We would suggest comparing your health insurance, as this is a significant expense once you are at retirement age – due to the fact that the risk to the Insurer of you using the policy increases.
Try our Equity Release Calculator for an illustration of your options
Equity Release Calculator - How much can i borrow?
The amount you can raise through equity release depends on a number of factors including the value of your property and how old you. If there are two people jointly taking out the plan, it will be based on the age of the younger.
On a lifetime mortgage, the maximum loan is typically around 50% of the property’s value, but younger borrowers will have their loans capped well below that. On a reversion plan, you can sell up to 100% of your interest in the property in some cases – what you get for that share will depend on your age. The older you are, the more you will be offered.
Things you should know about equity release
Before you think seriously about equity release, consider your alternatives. Have you claimed all state benefits for which you are eligible, considered using other savings or assets or thought about renting out a room in your home? Have you tried to reduce your other financial commitments? other ideas include switching medical insurance, some customers have been able to significantly reduce what they pay every month to their heath insurer, you can often move on the same medical terms too. Another expensive policy worth trying to reduce is Life Insurance. For many though, the most effective way of releasing a decent sum of equity will be to downsize to a smaller property.
It’s important to bear in mind that when you take out a lifetime mortgage you are agreeing that your property will be sold at the end of it. In order to make sure this is possible, your lender may place certain restrictions on what can be done to your home once you’ve signed up for a lifetime mortgage, and is likely to insist that it is kept in good condition during the term of your loan.
Taking out an equity release plan will reduce the value of the estate you are leaving your family (assuming you plan to spend the money), so it may be worth talking to them about it. You may even want to release the equity to help them out – but check that they want you to do this.
We would always recommend that you speak to an adviser who can give you all the facts about Equity Release, it does however represent an effective way to free up a large sum of money without leaving the home you love.
If you would like a quick illustration, use our Equity Release Calculator above.
