Equity Release will reduce the value of your estate and can affect your eligibility for means tested benefits.

What is a Life Time Mortgage?

  • Also known as Equity Release.

  • A mortgage is a loan which is secured against your home.

  • This mortgage allows you to release money from your home and the money you receive is 100% tax free.

  • This money (plus interest) is repaid once you sell your home or move into long term care

  • This type of mortgage allows you to still live in your home and keep 100% ownership.

  • A lifetime mortgage comes with a “no negative equity guarantee”, which means you or your estate never owe more than the property is sold for (subject to the product’s terms and conditions)

  • You can choose between no monthly repayments or interest only repayments.

Examples of how people have benefited from Equity Release:

  • They have taken a tax -free lump sum or monthly amount to supplement income at retirement!

  • Allows clients to repay an existing mortgage!

  • Allows tax free lump sums to carry out home improvements, clear debts or to fund holidays of a lifetime and other lifetime ambitions!

  • Allows you to release money to help children/grandchildren out financially, for example to get them on the property ladder or give them their inheritance early!

Who is this for?

  • To be considered for a lifetime mortgage, a loan secured against your home. You must be;

  • Aged 55 or over.

  • Own a property worth £100,000 plus.

  • Live in England, Wales or mainland Scotland.

  • Own your home with a small mortgage or have no mortgage at all.

How can we help?

  • We can help you understand how Equity Release could benefit you!

  • We will explain things to you (and your family if you think that is beneficial) in a jargon free manner, in a transparent way that allows you to understand this area better and ultimately decide if this is right for you.

  • If you decide to proceed with any advice, we will issue our terms of business and discuss in some detail the costs and charges applicable

Important Information

  • It’s important to remember that a lifetime mortgage could impact your entitlement to any means tested benefits.

  • It will also reduce any inheritance you may wish to leave behind so its worth discussing this option with your family before you make a decision. Should this be important you can elect to protect a percentage of your property for your loved ones.

  • There may be cheaper ways to borrow money. Any existing savings and investments should be taken into account before considering a lifetime mortgage.

  • Taking out a lifetime mortgage is a big decision, so to ensure you understand all the features and benefits, you won’t be able to buy a lifetime mortgage without financial advice.

  • Interest is added to the loan amount each month. The interest is compounded which means the amount you owe will grow over time.

  • If you gift money away the recipient may have to pay inheritance tax in the future.

  • If you are considering repaying debts, you should think carefully before securing debts against your home.

  • Arrangement fees apply.