Introduction to Equity Release

Equity release: unlock money from your home for a more comfortable retirement

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:

Generate a capital lump sum
Provide an additional income
Give lifetime gifts to relatives
Make home improvements
Buy a holiday home
Pay for 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. However, this may not be the case; for example, if you make repayments, you will preserve as much of the inheritable estate as possible.

Is equity release right for me?

While 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
Affect your ability to claim certain state benefits and your personal tax position.
Have an 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, or potentially selling the home and moving into rented accommodation or living with children or other relatives.

Don’t worry, as we can help you understand all the features and drawbacks so you can make a fully informed decision.

Expert financial advice about what is right for you

As financial advisers with the required equity release qualification and training, we 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 our financial service does, as you can rest assured knowing you have found the right solution for you.

It is advised that customers seek independent legal advice before entering into a legally binding equity release contract.

Warning Text

EQUITY RELEASE MAY REQUIRE A LIFETIME MORTGAGE OR HOME REVERSION PLAN. TO UNDERSTAND THE FEATURES AND RISKS, ASK FOR A PERSONALISED ILLUSTRATION.

EQUITY RELEASE WILL REDUCE THE VALUE OF YOUR ESTATE AND CAN AFFECT YOUR ELIGIBILITY FOR MEANS TESTED BENEFITS.

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.