Please note: Our Bolton branch is closed. However, our Newcastle branch remains operational and we are always happy to offer nationwide financial advice and guidance. Our advisers remain contactable at info@b-advised.co.uk.

Equity Release Advice

What is Equity Release?

More people than ever before are looking to borrow in retirement to help full fill their lifelong ambitions. This can range from home improvements, a holiday abroad or helping grandchildren with a deposit for a house. An alternative for individuals unable to secure a loan is equity release, enabling you to access the value locked in your property without the need to sell or relocate. Tailored for homeowners aged 55 and above who fully own their property or have minimal mortgage obligations.

Types of Equity Release

Lifetime Mortgages are a type of equity release which you can use to extract funds from your home in a single lump sum or in smaller amounts over time. We call this process drawdown. Alternatively, Home Reversion Plans allow you to access all or part of the value of your property while retaining the right to remain in it rent free.

You can borrow against the value of your home; sell it or part-exchange it for a lump sum or a regular monthly income to support your lifestyle.

Is Equity Release safe?

Yes, the FCA regulates and oversees the ERC (Equity Release Council). The FCA enforce regulations, while the ERC establish standards and principles for its members, ensuring that you are well-informed and adequately safeguarded.

Who we work with

As whole of market advisers we work closely with leading Equity Release providers, ensuring you have complete piece of mind along with access to great offers.

Equity release Companies
toy house with money pouring out

How does a Lifetime Mortgage work?

A portion of your property value is converted into cash or income while you retain ownership and residence of the property until you pass away or enter long-term care. Interest is applied to the amount you release.

  • Suited to homeowners over the age of 55.
  • For those who wish to retain ownership.
  • You can use the money released for any purpose.
  • No monthly repayments.
  • Right to remain in the property.
  • The Lifetime mortgage is portable to another property.
  • Secured by a charge on the property.

When you take out a Lifetime Mortgage no repayments are necessary. The interest accumulates and can be settled through the sale of your home or other means. Any remaining balance will go to you or your estate. You may opt to repay the interest.

You will still own the property, benefiting from any increase in its capital value. However, releasing capital might impact your eligibility for means-tested state benefits.

This commitment is long-term and will reduce the inheritance passed on to your family, potentially offering a benefit by potentially avoiding Inheritance Tax charges for some individuals.

Remember, a Lifetime Mortgage is a significant financial commitment. To fully understand its features and risks, it’s advisable to request a personalised illustration.

Keep in mind that a Lifetime Mortgage will decrease your estate’s value, may not be suitable for everyone, and could affect your state benefits eligibility.

Before proceeding, ensure that this mortgage aligns with your future plans regarding moving, selling your home, or passing it on to your family. Our advisors are available to assist with any inquiries you might have.

senior couple having consultation with financial advisor

What is a Home Reversion Plan?

Home Reversion involves the sale of all or part of the property in exchange for cash or income and the right to reside for as long as you wish rent free until death or long term care is needed.

  • Suited to homeowners over age 65.
  • You can use the Money released for any purpose.
  • Right to remain in the property.
  • You will not own the property.
  • Generally a larger lump sum paid.
  • Can retain a share of the property.
  • Portable to another property.

When selling all or part of your property, there is no need for repayments, and no interest accrues. If, in the unfortunate event of your passing or long-term care, upon your request, any remaining funds would be transferred to your estate.

You will not benefit from growth unless you have a share ownership percentage. Releasing capital might impact your eligibility for means-tested state benefits.

This decision can influence the inheritance you pass on and, in certain situations, can help lessen tax obligations by timely asset disposal.

This is a Home Reversion Plan. To understand the features and risks please ask for a personalised illustration.

These plans, while similar, have significant differences tailored to various situations. We provide guidance to help you make informed decisions, reviewing products to find the best deal for your needs, making the decision-making process easier. This ensures you can maintain your lifestyle worry-free.

paper cut out elderly people standing on top of piles of coins

Age Limits

Building societies currently provide loans with extended age limits, permitting borrowers up to the ages of 80 or 85, or without any maximum age restriction.

Important Points

The pension reforms could notably impact the ability of older borrowers to repay loans.

Finally, the equity release council approval means that if prices fall you will never owe more than the value of your home providing a no negative equity guarantee.