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Equity Release &
Later Life Mortgages
Retirement Interest
Only Mortgages
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beyond age 65
Interest Only Mortgages
beyond age 65
Inheritance Tax
Planning

Is Equity Release right for you?


Equity Release is a way of releasing cash from your home,
but are there risks?

An equity release mortgage is a great way of releasing cash from your home but it’s a big decision. By arranging your plan with the Equity Release Marketplace you can be confident that you will receive straightforward, jargon free advice.

What types of equity release plans are there?

Lifetime Mortgage

This is the most common type of equity release. You borrow money secured against your home. The mortgage is usually repaid from the sale of your home when you die or move permanently into residential care.

Retirement Interest Only

Similar to a standard interest only mortgage, but affordability is assessed on your pension income, rental income and investment income.

Home Reversion Plan

You raise money by selling all or part of your home while continuing to live in it until you die or move into permanent residential care.

Who can get equity release?

There are certain conditions you must meet before being able to take out equity release.

Bullet   For a lifetime mortgage you (or both of you, if you’re borrowing jointly) need to be at least 55 years old.
Bullet   You must own property in the UK, which must be your main residence. If you have a by-to-let property you can release equity with a buy-to-let mortgage even if you have retired.
Bullet   Your property must be in reasonable condition and over a certain value, and there may also be restrictions on the type of property accepted.
Bullet   If you have a mortgage or secured loan on your property you may still qualify for equity release, but it will depend on the value of your home and the amount outstanding on the existing mortgage or loan. You'll have to pay off any outstanding mortgages or loans secured against your home at the same time as taking equity release.
Bullet   Equity release may not be suitable if you have dependants living with you. Any dependants should take separate legal advice. If they wish to remain living with you in the property, they may need to sign a waiver confirming that they understand they don’t have the right to reside there if you die or move into permanent residential care.

For more information please contact us on 0800 170 7472 or complete our enquiry form.

The advantages and disadvantages

Advantages

Bullet   You can get a tax-free lump sum and/or smaller, regular payments to supplement your income, and can continue to live in your home until you die or move into permanent residential care.
Bullet   You may continue to benefit from any rise in the value of your property.
Bullet   You can still move to a suitable alternative property in the future, as equity release is transferable. It will be subject to your new home meeting the property suitability criteria applicable at the time.
Bullet   With a lifetime mortgage, you continue to live in and keep ownership of your home.

Disadvantages

Bullet   Equity release reduces the value of your estate and the amount that will go to the people named as beneficiaries in your will. Your estate is everything you own, including money, property, possessions and investments.
Bullet   With a home reversion plan, the reversion company owns all or a part-share of your home.
Bullet   Getting a lump sum or taking extra cash to supplement your income may reduce your entitlement to means-tested benefits, now or in the future.
Bullet   If you get care at home funded fully or partially by the local council, they may start charging you or ask you to pay more.

How does equity release affect benefits?

Equity release can affect any benefits you receive and may have an impact on any benefits that you may become entitled to in the future.

If you receive any means-tested benefits, they may be reduced or lost entirely. Means-tested benefits include:

  • Pension Credit
  • Jobseeker’s Allowance
  • Income Support
  • Income-related Employment and Support Allowance
  • Universal Credit
  • Council Tax Support

A specialist equity release adviser will be able to advise what will happen to your benefits if you take out a plan.

How can I avoid risk with equity release?

All firms advising on or selling equity release have to be regulated by the Financial Conduct Authority (FCA). This provides protection, security and access to the Financial Services Compensation Scheme if you ever need it.
You should choose a product from a company that is a member of the Equity Release Council. This is an industry body and its members agree to abide by a voluntary code of conduct. This includes certain product standards. When these standards are met it means you:

  • Can live in your property for life, or until you move into permanent residential care
  • Can move your plan to an alternative property (providing it is acceptable to the equity release product provider)
  • Will never owe more than the value of your home when it is sold after you die or move into permanent residential care
Always make sure you speak to a specialist equity release adviser, and that both the adviser and the equity release provider are authorised by the FCA. If something goes wrong with your plan, contact your provider first. They will have a complaints procedure to follow. If you’re not satisfied with the response, you can contact the Financial Ombudsman Service to see if they can help.

Okay, let’s do the sums

Prefer we do the calculations? Just call us on 0800 170 7472


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Why use Equity Release Marketplace?

Frequently Asked Questions


How does it work? What does an Equity Release Specialist do?
Initially, our Specialists will provide you with research based on your current requirements and situation. This is without obligation on your part – that’s just how we do it.

If you find what we have sent of interest and wish to go forward, we will make a thorough assessment of your needs and recommend an appropriate lender and mortgage product for you. We will then approach that lender on your behalf, to gain a decision in principle and an indication of their willingness to lend.

We then manage your application through to completion, keeping you in the loop throughout.
Are you whole of market? Independent? What does this mean?
We are a completely independent and whole of market Mortgage and Equity Release Brokers.

This means that we are not tied to any lender or third party, and we have access to the whole mortgage marketplace, allowing us to ensure we get you the right deal.
What are your qualifications?

All Equity Release Marketplace advisers hold a Certificate in Regulated Equity Release (CeRER) enabling them to advise on the specialist area of Equity Release. All our Mortgage Advisers also hold a Certificate in Mortgage Advice and Practice (CeMAP).

What happens if I pass away or go into residential care?

Your personal representatives will be asked to repay the mortgage.

They will have the opportunity to do this over a twelve-month period in order to gain the best value for the sale. They remain in control of your affairs for this period and will not be subject to interference from the lender.

If the lifetime mortgage is in joint names, the loan does not become payable until the remaining account holder dies or vacates the property.

How can I avoid risk with Equity Release?

All firms advising on or selling Equity Release have to be regulated by the Financial Conduct Authority (FCA). This provides protection, security and access to the Financial Services Compensation Scheme if you ever need it. You can refer any complaints that may arise to the Financial Ombudsman Service.

You should choose a product from a lender that is a member of the Equity Release Council (we will advise you on this). This is an industry body and its members agree to abide by a voluntary code of conduct. This includes certain product standards. When these standards are met it means you:

  • Can live in your property for life, or until you move into permanent residential care
  • Can move your plan to an alternative property (providing it is acceptable to the Equity Release product provider)
  • Will never owe more than the value of your home when it is sold after you die or move into permanent residential care

Speak to an expert

Speak to an equity release expert

Contact us on 0800 170 7472 or make an enquiry

The Equity Release Marketplace