Usually Asked Questions

Am I eligible for Equity Release?

To be eligible you need to be

A) Aged 55 years or over

B) A UK home owner

If you meet the above criteria you can make an application. There is no guarantee you will be accepted until the lender is happy the property and the applicant/s meet their lending criteria. There are around 10 Lifetime Mortgage lenders at the moment in the market and they all have different criteria. I.E A property can be declined if its too close to commercial premises by some lenders, or an applicant can be declined if they do not have the mental capacity due to an illness such as dementia and they have no Lasting Power of Attorney in place. This is indeed why you would need to speak to a professional advisor who will be able to find the right lender for you.

What is the catch with Equity Release?

The dictionary definition of a catch is ” A hidden problem or disadvantage in an apparently ideal situation”. Therefore the most important thing is to make sure nothing is hidden. Before entering into an equity release plan, write down whats most important to you, what you expect from a plan, and discuss this with your advisor. You will be given an illustration before you sign up. Read it carefully and ask questions, a good advisor will always welcome questions. Remember , clarity is key.

That said, here are the possible “catches” :

“Early Repayment Charges: If you are paying the plan off early , the lender might penalise you “

“If you are to move away from your home permanently , you will need to settle the plan”

“The interest is usually rolled up, therefore you will leave less behind to your beneficiaries, and/or you will have less available for care costs etc”

“With a Home Reversion plan , you will no longer be the owner of your home.”

The above are some examples of possible disadvantages depending on your circumstances. But if they do not affect your circumstances and you were clear about them from the beginning, they are unlikely to be catches.

Professional equity release advice eliminates catches.

Coming up….

Can I change my equity release provider?

Who do I speak to about equity release?

Can I be refused equity release?

Can I pay off an equity release plan early?

Can I move home if I release equity?

Can I make interest payments on an equity release plan?

Is the interest rate on my equity release plan fixed?

Does my equity release plan have an end date?

Can I release equity more than once?

Is equity release a con?

What are the alternatives to Equity Release?

Is Equity Release a good idea?

Are there geographical limits as to who equity release is available to?

What is the best age to take equity release?

Can I rent out my house If I have equity release on it?

What are equity release fees?

Do I need to meet affordability criteria for equity release?