Is Equity Release A Good Idea

Why is Equity Release becoming more popular?

Equity Release is becoming an increasingly popular way to unlock tax free cash from your home if you are aged 55 or over. There’s no need to move home or worry about monthly repayments, and a growing number of financial institutions provide viable equity release plans for you to choose from. Lifetime Mortgages are the most popular type of plan, and you have the option to draw down a cash lump sum or several instalments to boost your disposable wealth or income in retirement.

That said, if you are worried about your family’s inheritance being affected, you may want to explore the idea further before deciding whether equity release is a good idea for you. Some schemes offer the option to protect a percentage of your property’s value, effectively ringfencing part of your inheritance.

It’s a complex area of financial planning, which is why you should always seek expert professional advice from an independent financial specialist. I have been an equity release broker for many years, acting as a completely independent intermediary for clients seeking equity release solutions. As such, I can offer market intelligence and act as an agent for you, providing personalised advice and assistance throughout the process to arrive at a tailored equity release plan for you. Why not contact me on 01903 254993 to find out more?

 

Tracey Matthews – South Wales,

John Whyte was recommended to my dad for equity release and I am so glad he was as I don’t think we would have got this service from anyone else.

There were alot of moving parts involved and John stayed on top of everything right the way through and I feel he done more than his job, which I will be forever grateful for and my dad gets to stay in his home.

Mr & Mrs Firth – Shoreham By Sea,

Very happy with the way Mr Whyte carried out our requirements to the very end. He was professional and talked us through the whole process. We will be recommending him to friends in the future.

Malcolm & Christine Franklin – Bristol,

We were impressed with John’s detailed knowledge of Equity Release & the professional way he collected the necessary information & presentation of three proposal from which we choose the most suitable to suit our situation. His communication was also very good resulting in a speedy & satisfactory conclusion.

Richard and Carol Edwards – Caerphilly South Wales,

We wish to thank you for the exceptional way you dealt with our recent Equity Release drawdown.
You gave us a clear path that we should follow and carried out all of the stages in a very professional way, keeping us informed at each step. You dealt with us in a very empathetic way,
Keeping in mind our age and the exceptionally stressful situation we found ourselves in.
We would recommend you to anyone in a similar situation to ours.
Once again many thanks for all the help you gave us.

Richard Mathieson – Cheltenham,

It is a long held belief that you should borrow as much as you can for as long as you can, the rationale being that, over time, house price inflation will wipe out the debt. Being of a certain age, the term of any conventional mortgage becomes increasingly limited and so to be presented with so many options through the Canada Life product made it a ‘no-brainer’. Sincere thanks to John for introducing this product to me in an entirely professional and informed manner.

Tony Morris-Davies – Surrey,

I don’t think that we would have got a mortgage without John. He was highly efficent and always dealt with issues promptly. After a couple of false starts due to our circumstances, our third mortgage application was approved four days after the application was submitted and that saved our purchase which was on a tight deadline. So a big thank you to John and we highly recommend his services.

Mr & Mrs Deacon-Hedges – Hove,

I cannot thank John enough for helping my husband and I start to get a grip on our finances. Like many people we have a mortgage and had not really thought about things. We just paid it without thinking. Life events – my husbands ill health made us take stock. Firstly John helped us with our home mortgage and now he is sorting out our buy to lets. He has been so helpful and really made sure we knew what we were doing. No pressure and each step clearly laid out with time for us to think things through and ask questions. The lifting of the stress it had been causing is great and I feel in control.

Paul Stafford – Forect of Dean,

John was extremely professional and helpful, particularly when a surveyor from the first company approached would not provide a value as it was deemed an adjacent property was commercial. Within a very short period John had alternate providers lined up and the whole process went very smoothly indeed.

Margaret Lewis – Haverfordwest. Wales,

John was very helpful and guided me through the process, made sure that everything was going along as it should.
I would recommend him to my friends.

 

Is Equity Release a good idea for you?

The basic idea behind the concept of equity release is that you can release the money tied up in your home while carrying on living there. The cash thus obtained can be used for whatever you wish. Whether you are considering home improvements, planning a holiday of a lifetime, helping out a family member financially, or boosting your regular retirement income, equity release could be the perfect financial vehicle to help you achieve your goals.

The money you receive is tax free and you can choose not to make monthly repayments. The loan plus interest accrued is repaid when the property is sold, which will happen when you move into long-term care or pass away.

In order to be eligible for a Lifetime Mortgage, you must be aged 55 or over, own your own home and have sufficient equity – the difference between the value of your property and any outstanding finance secured against it – in your property. Your property doesn’t need to be mortgage-free, since any existing loans can be repaid with the money freed through equity release.

There’s a handy calculator here to help you find out how much money you might be able to release.

 

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Is Equity Release safe?

Equity release may have had a dubious reputation back in the 1980s, but thankfully the industry is now fully regulated by the Financial Conduct Authority (FCA). What’s more, the Equity Release Council (ERC), the overseeing industry body, offers additional product standards and safeguards to protect the consumer such as:

  • Lifetime Mortgages which come with fixed or capped interest rates for the lifetime of the loan
  • Right to stay in the property for life (or until you move into long-term care) as long as you abide by the loan’s T&Cs
  • Right to move house as long as the new property satisfies the conditions of your equity release provider.
  • ‘No NEGATIVE equity guarantee’ for all ERC governed lifetime mortgages, meaning that the amount owed will never be more than the net property value.

The ERC also provides strict rules and guidance for the sales process that all members have to comply with. You can only take out a Lifetime Mortgage if you receive professional financial advice and independent legal advice, so you understand exactly how equity release works.

I am a full member of the Equity Release Council and am committed to putting the best interests of my clients at the forefront of my actions, exercising maximum skill, care and diligence at all times.

If you have any questions about how equity release could work for you, or would like to arrange for a free, no obligation initial meeting with John Whyte Equity Release Specialist, please do not hesitate to get in touch or complete the form here.

FAQs

Can equity release influence your credit score?

No, taking out a Lifetime Mortgage will not affect your credit score. What’s more, since the amount you can borrow depends on your age and the value of your home, your eligibility to apply for equity release won’t be affected by your current credit score either. However discharged bankrupts are not eligible from Equity Release.

Are your state benefits affected by equity release?

Yes, it is possible that equity release may affect certain benefits such your pension, savings or universal credit– it depends on your personal circumstances. It is important to take the advice of a qualified expert, and you can also get more information from the Benefits Agency or Citizens Advice.

Will your children inherit any debt?

No, this should not happen. After your death, the Lifetime Mortgage will be repaid from the proceeds of the sale of the property, and the remaining equity will go to your children. For added security, all Lifetime Mortgages governed by the ERC come with a ‘no negative equity guarantee’, so you will never owe more than your home is worth.

Welcome to Your Quarterly Update

What’s the best equity release scheme?
Senior couple planning their investments with financial adviser in living room

What happens to my equity release plan if I go into long-term care?

Discover how much you can release with our calculator

Equity Release Sussex is a trading style of The Later Life Lending Network Limited, an Appointed Representative of The Right Mortgage Ltd, which is authorised and regulated by the Financial Conduct Authority (Ref – 649443). Registered in England and Wales no. 09832887. Registered address: 70 St. Johns Close, Knowle, Solihull, England, B93 0NH.

For Independent Equity Release advice we do not charge any upfront fees however,
a fee of up to 1% of the total cash facility arranged is payable (subject to a typical minimum charge of £1,295) on completion for our service in relation to lifetime mortgage contracts plus commission from the lender.

 

The exact amount will depend on the complexity and work involved in your case and will be confirmed by way of a formal fee agreement.

For Independent Mortgage Advice we charge a fee of up to 1% of your mortgage amount payable (subject to a typical minimum charge of £295 payable on application & £300 on completion (£595 in total) plus commission from lender. The exact amount will depend on the complexity and work involved on your case and will be confirmed by way of a formal fee agreement.

The information contained in this website is subject to UK regulatory regime and is therefore intended for consumers based in the UK