Equity release policies are a long-term loan which is secured on your property. The amount you can borrow depends on factors such as your age and the value of your property. You do not usually have to make any repayments before the end of the plan. Instead, each year interest is added to both the loan and any previous interest that’s already built up. The loan and interest are repaid in full, usually from the sale of your property, when you die or go into long-term care, subject to the provider’s terms and conditions.
Equity release will usually reduce the inheritance you can leave but will allow you to release some of the value of your home tax-free, while keeping the right to live there. This can be used for a variety of reasons such as home improvements, gifts or house deposits for family, generating supplemental income, holidays and more. Please be aware this may affect your tax position and eligibility for means-tested state benefits, which we will discuss with you prior to application.
It’s important to consider the benefits, costs and risks before deciding whether equity release is right for you. We would be delighted to discuss each of these in relation to your personal circumstances, during your free no-obligation general financial review.
Unlike many advisers who charge the client for the advice and also claim a commission from the provider, we do not charge for the advice given on equity release. Instead, we are paid only by the provider, when your equity release policy successfully completes.
Please note, we only offer advice on the version of equity release known as Lifetime Mortgages. Where another product type may be more suitable, such as a Home Reversion Plan, we would refer you to another firm who is able to advise accordingly.
Financial planning is a complex area which varies greatly depending on individual circumstances, and holistic independent financial advice should be sought prior to making any changes. Click here to book your free initial General Financial Review.