Equity Release Mortgage Advice And Lifetime Motgages
Unlock money from your home for a more comfortable retirement
Equity release products are either lifetime mortgages or home reversion plans. We offer a comprehensive range of equity release products from across the market but not deal’s that you can only obtain by going direct to a product provider.
Equity release is typically available to people who are over the age of 55 and have their own home with a significant amount of equity but don’t have enough money or income for their needs. By releasing equity in the form of a lifetime mortgage or home reversion plan, it enables the individual(s) to remain in their home and raise money for things such as:
- to generate a capital lump sum
- to provide an additional income
- to provide lifetime gifts to relatives
- for home improvements
- for holiday home purchase
- to fund long term care
Where equity release is a suitable solution and you take out a lifetime mortgage or home reversion plan, the money does not usually need to be paid back or the home sold until the last remaining borrower dies or moves into care, although this may not be the case, for example, if you make repayments to preserve as much of the inheritable estate as possible.
Are equity release mortgages safe?
Always look out for Equity Release mortgages that are covered or follow the Equity Release Councils approved products, that way you know they meet a certain standard.
Expert financial advice on what is right for you
Only deal with financial advisers with the required equity release qualification and training, who can assess your individual circumstances and needs, and then give you expert advice on the right course of action for you. The benefits need to outweigh the drawbacks to ensure equity release is more suitable than alternative methods of raising funds.
It’s often said that you can’t buy peace of mind; however that’s exactly what the right and appropriate financial service does, as you can rest assured knowing you’ll have the right solution for you.
It is advised that customers seek independent legal advice before entering into a legally binding equity release contract.
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Is equity release right for me?
Whilst there are benefits for people in this situation, equity release isn’t for everyone and the benefits need to be weighed up alongside drawbacks, such as equity release can:
- be expensive
- impact on you being able to claim certain state benefits and your personal tax position.
- impact on local authority grants / other grants (i.e. for essential home improvements)
- potentially erode any inheritance passed down to loved ones
Also, there may be alternative options available to you that need to be explored before taking the equity release route, such as consideration of a conventional mortgage as an alternative, moving to a smaller home, using any savings or investments and potentially selling the home and moving into rented accommodation or living with children or other relatives.
Please note: Equity release could involve either taking out a lifetime mortgage or a home reversion plan. To understand the features, the benefits and the risks, please ask for a personalised illustration. Equity release may impact the size of your estate and it could affect your entitlement to current and future means-tested benefits.
It is advised that customers seek independent legal advice before entering into a legally binding equity release contract.
The costs involved will be discussed with you before you proceed with any equity release advice.
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.