Equity Release

If you are aged 55 and over, equity release allows you to release tax-free cash from the value of your home. The amount you can release is based on your age and how much your home is worth. There are various equity release products to suit your needs and you can claim your money as one large lump sum or as a series of smaller lump sums.

Equity Release can be the solution

  • It can be the solution to helping your children with money difficulties. or to help them buy their own home.
  • It can contribute to living out your retirement dreams of travelling the world or buying a dream car.
  • It can help pay off your loans.
  • It can help you make vital home improvements as you grow older.
  • It is some extra tax-free money to help you enjoy your retirement.

Your lender can also give you the option to protect an inheritance for your family from the value of your home. The amount you protect won’t be used when calculating how much you can borrow. You can discuss this with your financial advisor.

Some equity release providers also offer a no-negative equity guarantee. This means that the money you’ll eventually need to pay back will never be more than the total value of your home. You won’t need to pay the money you have released back until the last surviving borrower passes away or moves out of the home into long-term care. The loan is usually paid off from the sale of your home.

How long does equity release take?

Depending on the product you decide to take and the lender providing the loan, the process can usually take around 8 to 12 weeks. 

Are there additional fees?

As well as your brokerage fee, there are other fees you should be aware of as you begin the application process. Fees may include arrangement fees, solicitors fees and interest rates. We can provide you with a breakdown and give you an idea of additional fees when we look at your case.

How do I repay an equity release?

Your loan is usually repaid through the sale of your home after you pass away or move into long-term care. There are also early repayment options available, you can choose to pay all or some of the interest early. Early repayment options can be considered based on a number of factors and whether or not there are limits on repayments by some brokers, which can be discussed with one of our advisors. 

Optional repayments – To manage the amount you owe, you can make partial repayments in your own time.

Monthly interest payments – You can pay some or all of the monthly interest to reduce the overall cost of the loan.

Paying back the full loan and interest  – You can pay back the full amount early at any time but you may have to pay an Early Repayment Charge depending on your lender.

The steps to equity release solutions

Get advice from us

We can talk you through the range of equity release products available, check your eligibility and take the time to understand if equity release is right for you. We will look at your financial situation, your needs and your wants before we provide a recommendation.

Your valuation

Once you’ve chosen a product that suits you, a solicitor is appointed to act on your behalf and offer independent legal advice. We can submit your application to your lender and arrangements can be made to value your property.

Your Offer

Once your lender has approved your application and completed your valuation, they’ll send you the offer and terms through to your solicitor, for you to accept.

Receiving your money

Once you have accepted the offer, your lender will release your money to your solicitor and your solicitor will release the money to you as was agreed with the lender; as one large lump sum or as a series of smaller lump sums.

A Lifetime Mortgage is not suitable for everyone and may affect your entitlement to means tested benefits, so it is important to seek financial advice before taking any action. If you are considering releasing equity from your home, you should consider all options available before equity release.

The interest that may be accrued over the long term with a Lifetime Mortgage, may mean it is not the cheapest solution. As interest is charged on both the original loan and the interest that has been added, the amount you owe will increase over time, reducing the equity left in your home and the value of any inheritance, potentially to nothing.

Although the final decision is yours, you are encouraged to discuss your plans with your family and beneficiaries, as a Lifetime Mortgage could have an impact on any potential inheritance. We would also encourage you to invite them to join any meetings with your Financial Adviser so they can ask questions and join in the decision, as we believe it is better to discuss your decision with them before you go ahead. This is a referral service.


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