Before you get started with Equity Release, here are five things you need to know:
- You need to be 55 or older to be eligible, as do other all applicants involved in the process
- If the plan is registered and approved by the Equity Release Council, you won't end up in negative equity
- It's your home until you die or go into permanent care, at which point it will be sold
- You can ringfence some of the equity in your home, so money is left behind as a gift for loved ones
- If you have an outstanding mortgage, it must be paid in full first - using the equity you released or other funds
What Does Equity Release Mean For You?
When you release equity, the money can be used without restriction - so you won't have to put those important plans on hold.
What Are Your Options?
Option 1 - Lifetime Mortgage
A loan is secured on your home, but you can keep living in it.
Usually, there are no monthly payments to be made. When you pass away, or go into permanent care, your home is sold. The proceeds are used to repay the loan and any interest.
Option 2 - Home Reversion
You can sell some or all of your home to an Equity Release provider. The money can be paid as a lump sum, in instalments or both. It's still your home until its sold. Any remaining share can be ring-fenced and left in a will.
Having more options is never a bad thing; but it means there's more to think about. That's why you should talk to an expert.
What Will You Be Asked?
Before speaking to a specialist, you may want to prepare some of your answers. Common questions are:
How old is the youngest homeowner? Normally, you can’t get a joint Equity Release plan unless you’re both 55 or older.
How is your health and what’s your lifestyle? This will help your consultant recommend the right plan for your needs.
What is the condition of your property? They may need to know what state of repair it is in.
What Would You Spend Your Money On?
Did You Know Equity Release Is Safer Than Ever? This Is Why…
It's regulated by the Financial Conduct Authority (FCA) and overseen by the Equity Release Council (ERC). ERC-approved plans carry a no negative equity guarantee, so you'll never owe more than your home's worth.
Are You Interested? Here's how you do it:
Step 1: Select your country on the map below to start your FREE quote
Step 2: We'll get you talking to an Equity Release specialist to discuss your needs, compare options and make a decision if Equity Release is right for you