We can help.
We can help.
If you are considering releasing equity from your property, you should seek professional advice sooner rather than later. As qualified advisers, we will happily sit down with you to explain how an equity release plan works, then determine whether or not it will be a suitable option for you in the longer term. We offer this initial consultation for FREE to all of our customers.
For some clients, a Retirement Interest Only mortgage (otherwise known as a RIO mortgage), might be the most suitable option for you. However, please be aware that this type of mortgage can only be recommended by Advisors who hold the correct authorisation and qualifications. Rest assured that at Easyswitch Mortgages, you are in good hands here.
If we find that releasing equity using a Lifetime Mortgage or a Retirement Interest Only mortgage, is a viable way forward for you and your family, we will provide you with a free quotation and comprehensive written recommendations. You’re never under any obligation to go ahead with the plan we devise for you – but if you’re comfortable with our advice and would like to go ahead and release the funds, you will typically need to pay a brokerage fee of £495. There may be other costs involved in setting up your plan too, but we will liaise with lenders on your behalf to reduce set-up costs wherever possible, and in some cases we may even be able to attain cash back that will be payable to you on completion.
The benefits of taking out a lifetime mortgage
- You’ll receive a lump sum of tax-free money –and can spend it generally however you like, such as home improvements, a holiday of a lifetime, or helping out your children*
- You can continue to live in your own home
- You can choose to protect an inheritance
- You won’t need to make monthly repayments (but you can if you want to)
- You can add a cash reserve facility
- You can maintain home ownership
- You can still move home in the future **
- There’s a no-negative-equity guarantee
- Low rates of interest that can be fixed for life
- High cash release options are available
Your questions answered
What is equity release?
The value of your home, minus any mortgage or loan secured against it, can be described as your “equity”. An equity release plan allows you to access that equity and convert it into cash. If you have a mortgage or loan secured against your property, some of the money you release through a lifetime mortgage must be used to pay off the outstanding mortgage. These kinds of equity release plans can also be used to purchase a property.
Who can apply to release equity from their home?
To apply for an equity release plan, you must be at least 55 years of age, a UK resident, and own your own home.
What’s the difference between lifetime mortgages and home reversion plans?
The most popular type of equity release plan is known as a lifetime mortgage. With this type of agreement, the interest charged on the mortgage is not paid by you on a regular basis, but it is instead “rolled up”. This means that the outstanding mortgage balance increases each year. However, if you can afford either regular or ad hoc repayments, then these can be made to reduce the total outstanding balance. Home reversion plans involve selling a stake in your property in return for a cash lump sum. You therefore become a co-owner but continue to enjoy the right to live in your property for the rest of your life. The amount you receive for your share of the property is usually significantly less than the value of the share you surrender. We do NOT offer these types of plans.
How is the money paid back?
With a lifetime mortgage, the money you release is paid back, in addition to any interest that has built-up, when the property is sold. This is usually when you pass away or move into long-term care.
* Think carefully about how much you need to borrow because interest can roll up quickly and we do not recommend the funds be used for investment purposes.
** subject to the new property meeting the lender’s criteria if you do not redeem the lifetime mortgage
How much can I raise?
For most new customers, ‘how much can I raise?’ is probably the first question you will want to ask.
If you look at various websites, you will see many of them offer a calculator option to tell you how much you can borrow, usually in exchange for an email address and contact number. Not a bad trade-off. But, unless you are suffering from very poor health, these calculators will often give quite a distorted view. Let me explain.
The amount any provider will lend you by way of a Lifetime Mortgage is based on the value of your property and your age. Quite simply, the older you are, the more you can borrow as a percentage of your property value. However, if you are in poor health, your life expectancy may be shortened further. That, in turn, will often mean that the lender may offer a higher percentage of your property value.
Why am I telling you this? When you plug your details into one of these “calculators” it will assume you are in the worst possible health and therefore quote the very maximum you might borrow based on this. So in most cases, this will be an inflated figure, rather than an accurate assessment based your personal circumstances.
So, our advice is to get in touch with us so that we can find out enough about you to give you an accurate figure on how much you can raise.
It’s highly unlikely that you haven’t heard of Aviva, one of the most established insurance companies in the UK, who has been at the forefront of the equity release market for many years. With over 31 million customers worldwide, Aviva is the largest insurance group in the UK.
Canada Life’s vision is to help build better futures and be a world class financial services provider. Putting customers at the heart of everything they do and working in line with their values of people, excellence, integrity and together. Their award-winning retirement solutions have been designed to suit a wide range of needs and offer industry-leading value, financial strength and exceptional service.
Hodge Lifetime is a business that has been dedicated to the retirement market since 1965. With a great depth of experience and a strong and solid reputation Hodge look after their customers and are at the forefront of innovation in their core retirement lending markets.
Created after the merger of Just Retirement and Partnership Assurance in 2016, at Just they recognise that everyone’s retirement needs are different. You may want a regular income with the security of knowing that it’s guaranteed to be paid for life. Maybe you are looking for peace of mind and want to make arrangements for future care costs. Or perhaps you want to access the money tied up in your property to spend on home improvements or holidays. Or of course, a combination of these things.
Legal & General
Like Aviva, Legal & General is a strong brand you will know who have been helping customers since 1836.
As the UK’s most recommended insurer, LV is a forward thinking and dynamic financial services business. LV has more than 5.7 million members and customers and are the top provider of individual income protection. LV are keen to put their customers at the centre of everything they do.
Since more2life’s foundation in 2008, they’ve dedicated themselves to later life lending, and nothing else. As specialists in this market, we can confidently recommend a more2life plan knowing it’ll be market-leading and feature-rich.
OneFamily has created award-winning financial products that can help meet the demands of a modern family life. Whether it’s for funding towards further education, buying a house, or leaving something for loved ones, OneFamily’s aim is to support families during life’s pivotal moments.
Pure Retirement was founded on the belief that everyone deserves to enjoy their later years. As winners of the 2016 Moneyfacts award for Best Equity Release Provider, they provide simple and straightforward solutions for accessing the value tied up in your home.
What are the costs?
If you are considering releasing equity, you should seek advice on equity release costs. As qualified advisers, we are happy to chat with you to review your options and discuss if an Equity Release plan would be suitable for you, at absolutely no cost. This is to help you understand the full impact of releasing equity. You should make sure that you involve your family and take independent legal advice before you go ahead.
We provide initial advice for free and without obligation. Only if you choose to proceed and your application completes would a typical fee of £495 be payable. In some circumstances, such as complicated applications, a fee of up to £995 may be payable but of course, we will make this clear to you before you apply.
To ensure that the fee we charge is fair and in line with other professionals, we conduct regular market research and have found that there are many Equity Release advisors charging up to £1795.
There may be other equity release costs associated with setting up your plan, including valuation and legal fees and we will make sure that you are aware of all fees before you go ahead.
Want expert mortgage advice?
contact us today 01245 860866