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What is Equity Release?

The most common form of equity release, a lifetime mortgage, allows you to release money by securing a loan against the value of the your home that only needs to be paid off once the last surviving homeowner dies or moves into long-term care.

In most respects, a lifetime mortgage works in the same way as the conventional mortgage that you may have had – or may still have – on your home.

However, lifetime mortgages come with a number of unique features that make them more suited for those in retirement.

1. A lifetime mortgage puts you in control of repayments

Regular repayments during the term of the loan are an option rather than a requirement, so there are no formal affordability checks for most plans.

If you don’t make repayments the interest will roll up over time. This will increase the size of the debt and reduce the amount that will be left to your beneficiaries when you’re gone.

2. You will never pay back more than your home is worth

The no-negative-equity guarantee, which comes with all the plans we offer, means that your estate will never have to pay back more than your home is worth when it’s sold. Additionally, you can choose to protect a share of your home’s value in order to guarantee an inheritance for your loved ones.

3. You can move home and take a lifetime mortgage with you

Lifetime mortgages are portable, meaning that you can move house and take the loan with you subject to your new home meeting the lender’s criteria.

4. Lifetime mortgage interest rates are fixed – for life

With a lifetime mortgage, you know that the interest rate you will pay is fixed for life, no matter how long you live. This means that even if rates were to increase over the years ahead, you would continue to benefit from the low rates we’re seeing today.

5. You can still switch plans in the future

If new plans or interest rates were to become available in the future, then just like with a standard mortgage you have the ability to switch onto a new deal. Exit penalties may apply and you need to have had your existing plan for at least 12 months, so you should speak to an Equity Release Associates Specialist for full details – they will only recommend you switch plans if it’s right for you.

Is equity release right for you?

Part of our job at Equity Release Associates is to help you to make an informed choice about releasing equity.

Our Specialists are not only experts in equity release but are also able to help you consider a range of alternative solutions you may not have thought about. At the end of the day all that matters to us is what’s right for you. So if we think your needs would be better met by something other than equity release – such as any grants you may be entitled to or other forms of finance – we’ll tell you so.

However, if equity release is your best option, we’re superbly positioned to get you the best deal for your circumstances. Not only are our specialists independent – meaning that they give you access to plans from across the market – but we also have access to a range of plans that we have negotiated with leading providers on your behalf.

In short: we want our customers to get nothing but the best.

What does our service cost?

The initial consultation and recommendation from our Specialists is totally free of charge and there’s no obligation to proceed. If you do decide to go ahead then a typical fee of £1,695 will be payable when your case completes.

From start to finish, they offered a brilliant service. His detailed advice covered everything I needed to make the best decisions for my future. A very personal service. Would absolutely recommend this company to everyone I know. I will definitely be using this service again in the future.”

Mr Callaghan

All of the UK’s equity release providers in one place