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.
You must be over 55years old and be a property owner. The property should have a minimum value of £75000.
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
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
Some lenders provide interest only options and other lenders allow adhoc payments to be made.
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.
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.
NO. The Equity Release Council guarantees ensure you cannot lose your home, and that you can live in your home for the rest of your life
Due to a competitive market most lenders are offering free valuations and many do not charge application fees.
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.
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.
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.