Equity Release Frequently Asked Questions

Why should I choose to take out an Equity Release plan?

If Equity Release is right for you, it can significantly enhance your life or that of your family.

Key facts about taking out an Equity Release Plan:

  • Equity Release allows you to maintain all the benefits of owning your property whilst still benefiting from its value
  • Equity Release, can enhance your retirement from a financial point of view
  • Cash raised through Equity Release can be used to purchase a car, take holidays, improve or maintain your home, pay off debts or help out your family financially

Should I be worried about losing my home with Equity Release?

You will never lose your home with a regulated Equity Release Scheme.

Key Facts about Equity Release:

  • Safeguards ensure that you will be safe in your home for as long as you wish to live in it
  • It is also possible to guarantee that a certain percentage is left to your children or estate with certain providers
  • With the most popular scheme ( The Lifetime Mortgage) you keep ownership of your home.

What regulations are in place to protect me and how safe is Equity Release?

Modern Equity Release plans and the advice that is taken are covered by the Financial Conduct Authority (FCA).

Key Facts about Equity Release plans:

  • Covered by regulation under the Financial Conduct Authority
  • The Equity Release Council ensure that certain safeguards are in place such as no negative equity guarantee, ensuring that the loan will never be greater than the value of the property and the right to live in your home for the rest of your life
Equity Release

What type of Equity Release plans are available to me?

There are different types of lifetime mortgages available.

Key facts about lifetime mortgages:

  • A lifetime mortgage is a loan secured against your home like a normal mortgage
  • You can choose to pay interest or not
  • There is no fixed term because you have the right to live in your home for the rest of your life

How do I pay back the money I’ve borrowed through an Equity Release plan?

The loan and any interest is usually repaid from the sale proceeds of the property.

Key facts about repaying a lifetime mortgage:

  • The loan is usually repaid after the last survivor, in joint life cases, has left it, as they have either died or moved in to long term care
  • It may also be possible to repay the loan whilst living in the property, by means of a windfall or by downsizing
  • Early repayments are subject to potential redemption penalties (dependent on which plan you have taken out)

Can I repay an Equity Release loan early?

It may be possible to repay the equity release loan whilst living in the property.

Key facts about repaying an equity release loan:

  • It may be possible to repay the loan by means of a windfall or downsizing your property
  • Redemption penalties may apply for early repayments
  • Mark will be able to inform you of the options when he advises you on the specific product details

What if I decide to move home during an Equity Release plan?

Lifetime mortgages are generally portable from property to property.

Key facts about moving home with a lifetime mortgage or during an equity release plan:

  • Subject to standard lending criteria
  • It may be possible to alter your mortgage or plan as you go through retirement
  • It is not uncommon for people to move home with their equity release scheme, making alterations to it as they do so

Who sells my house when I die when I have Equity Release?

With a lifetime mortgage, the beneficiaries of your estate still control the sale of your property in the normal way.

Key Facts

Lenders usually give 6-12 months for the property to be sold

How long will it take to get my Equity Release money?

We estimate that it would usually take 4-6 weeks from the time you book an appointment to the time you receive your money.

Key facts:

  • This includes the time required for your advisor to carry out a full assessment of your personal circumstances, make recommendations and for you to decide if equity release is right for you.