Your Questions Answered
What is Equity Release?

It is simply a way of raising funds from the value of your property without having to pay for it until you die or go into long term care. There are no repayments of interest or capital to make until the equity release plan ends.

However, when interest is added to the amount you owe every year this will reduce the remaining equity in your home. If you live a long time or house prices fall, there may be no equity left for your heirs to inherit.

How do I qualify for Equity Release?

You must be over 55years old and be a property owner. The property should have a minimum value of £75000.

What can Equity Release do for me?

Equity Release can help raise funds for numerous reasons. You may choose to repay current loans or debts, home or garden improvements, celebration of a special event or provide for grand children to name but a few. You may wish simply to generate some funds to make your retirement that bit more enjoyable.

Think carefully before securing other debts against your home. By consolidating your debts into a mortgage you may be required to pay more over the entire term than you would with your existing debt.

How much can I borrow from my plan?

Please use the equity release calculator on the right which will tell you how much you can borrow. It is important to get the right advice on the amount you take and there are options available to take further amounts later when needed.

Can I make repayments on my plan?

Yes, there are some lenders that will allow you to make some or all of the interest repayments which reduces the impact of interest rolling up.

How does it affect my estate for the children?

Taking out equity release will impact on the value of your estate as the plan is repaid in the event of death. It is key to get the right advice to try and ensure that any inheritance wishes can be considered as part of your needs. Lifetime mortgages can quickly erode the remaining equity and as a result, there may be no value to pass on.

What does The Equity Release Council mean and how does it protect me?

The Equity Release Council formerly known as SHIP, is an organisation dedicated to the protection of the equity release consumer through a code of conduct which goes over and above Financial Conduct Authority regulations.

We only ever recommend Lifetime Mortgages from lenders who adhere to strict Equity Release Council standards. These requirements are:

  • You can live in your home for the rest of your life
  • You can move home and take the plan with you (providing there is sufficient equity in the new home)
  • A No Negative equity guarantee means your estate can never owe more than the value of your house
  • You need to take independent legal advice

All designed to protect you the plan holder.

Is my property at risk?

NO. The SHIP guarantees ensure you cannot lose your home, and that you can live in your home for the rest of your life.

How much does it cost to set up?

There are fees involved in setting up an Equity Release Plan. The fees could include a valuation fee, solicitors fee, lender arrangement fee and an adviser fee for the advice. The level of fees depend on the plan selected and also we have special arrangements with some lenders from time to time with discounted fees.

Can I borrow more money in the future?

Yes, providing the maximum amount allowed has not been reached. If it is likely further funds are required later a drawdown facility can be set up which allows further amounts to be taken without the need for further solicitors or underwriting. You only get charged interest on the amount borrowed. If drawdown is not included it is possible to apply for a further advance.

Why is it important for me to get specialist advice for Equity Release?

Equity Release is not right for everybody and it is important to consider all options. Equity Release can affect eligibility for state benefits and grants and can limit a customer’s options for moving house in later years.

Age UK strongly recommends you seek independent legal and financial advice. Different plans in the marketplace have their own features making it vital to get the correct advice.

Why Trust in Equity Release?

We can provide that specialist advice and as a well established Financial Services business we will ensure that you get the right answers. Here at Trust in Equity Release the customer is at the centre of everything we do.

Typical Case Studies for Equity Release
How much can I borrow?
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This is a Lifetime Mortgage. To understand the features and risks, ask for a Personalised Illustration. A Lifetime Mortgage may reduce the value of your estate and could affect your entitlement to means tested state benefits. To understand the features and risks, ask for a Personalised Illustration.

For Equity Release we can be paid a commission, or a fee of usually £795 or a combination of both, paid only on completion.

Mrs Y had built up debts which had become a problem for her as the cost of funding the debts was seriously impacting on her standard of living. Having involved her family, a plan was arranged to release £15000 on a lifetime mortgage. These funds enabled her to clear her debts which improved her income position significantly. The greatest impact for herself was the release of the pressure on her finances which eased her financial worries. This case has proved that even releasing a smaller amount can make a real difference to the circumstances of an individual.
Mrs D’s only son was getting married and she decided that she wanted to give her son the best possible start to married life. She did not have funds herself and decided she would raise £50000 from the value of her property to provide the happy couple with a significant deposit for their new home and also to make sure they started married life with funds behind them. There was still enough left over for her to enjoy a post wedding holiday to get over the stresses of organising the big day.
Mr and Mrs X moved into their retirement home which was a beautiful bungalow on a hill overlooking a valley. However the cost of buying the property left them short of funds to refurbish and redecorate their new home to the standards. We released £50000 from the value of the property to enable them to enjoy the view from their home by building a conservatory and completing the redecoration. The work completed has given them their dream home in which to enjoy their retirement.
Mr F and Mrs Y were brother and sister who jointly inherited the family home when their last surviving parent died. Mrs Y had lived in the home for the past twenty years and neither party wanted to see Mrs Y evicted from the property. Neither party had sufficient funds to be able to resolve the matter. Equity Release became the answer as Mrs Y was able to raise funds to give to her brother as part of the settlement that allowed ownership and occupancy of the property to stay with Mrs Y.
Mr and Mrs M wanted to mark their golden wedding year with some special events. They decided that they wanted to take their close family on a Caribbean Cruise to celebrate this great landmark. In addition they wanted to hold a party for family and friends to give them the opportunity to be part of their anniversary. They wanted a one off £20000 to fund these events and ensure that they were able to mark the event with celebrations they could reflect on for the rest of their lives.