Mortgages and Protection

Equity Release

All you need to know

Equity Release

If you are aged over 55 and a UK homeowner, you could be eligible to take a lifetime mortgage allowing you to release equity and spend the money on the things that matter to you.

Can you spend the money?

Your money can be put to use in a number of ways, you can gift money to loved ones, do some home improvements, book a dream holiday or simply use to enhance your enjoyment of later life. You can even pay off debts or your current mortgage should you wish too.

Can you still leave inheritance?

Usually, after you and any other participant pass away, your house will be put up for sale. You will pay off your debt with the selling profits, and any money that is left over will go to your estate.

Some Lifetime Mortgages provide an assurance that, when your plan comes to an end, a predetermined portion of the value of your house will be included in your estate, which you can then leave to others.

Will your house still be yours?

You will retain ownership of your home until you pass away or move into long-term care. Meaning no need to downsize.

Can you move home?

Yes. Subject to certain conditions, you are able to transfer your plan to a new home with any Lifetime Mortgage that complies with Equity Release Council guidelines.

Is Equity Release safe?

All firms advising on or selling equity release must be regulated by the Financial Conduct Authority (FCA). This provides protection, security and access to the Financial Services Compensation Scheme (FSCS) if you ever need it.

The Equity Release Council is an industry body which sets certain standards within the equity release market which its members agree to abide by. These standards ensure you can:

  • Live in your property for life, or until you move into permanent residential care

  • Move your plan to an alternative property (providing it is acceptable to the equity release product provider)

  • Never owe more than the value of your home when it is sold after you die or move into permanent residential care.

What should you consider?

Before considering Equity Release, it’s important to know all the facts. For example, with a Lifetime Mortgage, there are typically no monthly repayments to make, as the loan, plus roll-up interest, is repaid when the plan ends. You should always think carefully before securing a loan against your property, Equity Release will reduce the value of your estate and may affect your entitlement to means-tested benefits.

 

This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.

 Approved by In Partnership FRN 192638 July 2023