Welcome to Advice on Equity Release

Who are we?
Adviceon-equityrelease is designed as a brief introductory guide to what equity release is all about and is brought to you by independent equity release advisers Advice on Money. We only offer information and advice on regulated equity release schemes. To find out more detailed information on Home Reversion Plans or Lifetime Mortgages, you may also like to also look at our more detailed site www.lifetime-mortgages-uk.co.uk

What is Equity Release?
Equity release schemes are schemes for homeowners aged 55 + who have little or no mortgage on their homes but would like to release some of the money tied up in their home to improve their retirement, without the need to move.

The amount which can be released is determined solely by the age of the youngest applicant and the property value. A person of an older age can release a higher percentage of the value of their home, than a person of a younger age, as they are not expected to live as long. To find out just how much you could release click here.

What can the money be used for?
The equity that is released by any equity release scheme is tax free, (although if it deposited in a savings account, any interest earned would be normally taxed) and can be spent in any way that you wish, such as to;-

replace your car,
do home improvements
provide extra income,
or even pay off debts …. the choice is yours.

All equity release schemes involve borrowing against, or selling all or part of, your home and may work out more expensive in the long term than downsizing to a smaller property. They could also affect your entitlement to State benefits and grants. There may be more suitable methods of raising the funds you need.

Keith - Link to Reading

To speak to one of our equity release advisers call
FREEPHONE 0800 970 4882
or complete our online enquiry form.

Do you have to sell your home?
Not unless you want to. Whilst regulated Home Reversion Plans do involve you in selling the ownership of the property albeit with you retaining the legal right to remain living in your property for the rest of your life, Lifetime Mortgage equity release schemes do not require you to sell any legal ownership.

“Equity release” includes home reversions plans and lifetime mortgages. To understand the features and risks ask for a personalised illustration.

To find out more about Home Reversion Plans click here or Lifetime Mortgage schemes click here and to examine their relative advantages and disadvantages please click here

How safe are they?
Regulated equity release schemes which also meet the Safe Home Income Plans (SHIP) standards provide you with the following valuable safeguards;-

You cannot lose your home
A no negative equity guarantee, meaning that the loan plus interest would never exceed the value of your home
The right to remain in your home for the rest of your life
The freedom to move to another property without financial penalty
You must appoint an independent solicitor who will explain to you all of the conditions of the before you finally commit to a scheme.

Not only this but for your extra safety, the Financial Services Authority regulates the advice and marketing of such schemes.

If you would like advice, please complete our equity release enquiry form one of our trained consultants will call you back shortly. Alternatively please feel free to phone us Advice on Money on Freephone 0800 970 4882.

For researching and arranging the best scheme for you, we will make a charge, which is typically 2.5% of the initial amount released or facility created. This can be paid by you on completion either as a fee in which case we would refund any commission received, or alternatively we retain any commission received and you only pay the balance.

Definitions of equity release terms used:

Equity release;- Plans which help older homeowners release some of the value of their home without moving. This is done either by borrowing against it or even selling all or part of it for a regular income or lump sum or both.

Lifetime mortgages – A lifetime mortgage is an equity release scheme which allows you to release money by taking our a loan secured on the property. The amount provided is dependent upon age of youngest applicant and home’s value not income. No monthly repayments are necessary (although some scheme do allow it if you want, to stop the debt building up so much). No interest is repaid during your life, but interest is still charged and added up on the debt. The debt is repaid only on the last applicant dies or goes into care.

Drawdown Lifetime Mortgage – A version of a lifetime mortgage scheme where a maximum facility (based on age and property value) is made available at the outset but you choose just how much of this facility you draw initially. The remainder is left as a reserve to draw down as often as you like until the whole facility has been drawn down. No interest is charged on the reserve until drawn down. To find out more about Lifetime Mortgages including drawdown versions click here.

Home Reversion Plan - An alternative way of releasing either a lump sum, income or both from your home by selling all or part of the homes legal ownership to a provider whilst retaining the right to continue to live in your property for the rest of your life.

Reversion scheme – A different term for the same type of scheme as a Home Reversion Plan. To find out more about Home Reversion plans click here

Safe Home Income Plan (SHIP) A voluntary trade body which was set up in 1991 to raise the standards of equity release . Schemes which are SHIP approved means they offer you some valuable safeguards. To find out more about SHIP click here