Raise a lump sum using the equity in your home
Make an informed decision. Right now, equity release is a hugely popular way for the over 55s to raise finance, but is it right in all situations?
The Equity Release Advice Service is here to give you all the information, guidance and advice you need to choose the equity release package that fits you and your circumstances.
Find out how much you can release
Equity release in a nutshell
For homeowners over 55 with a property worth more than £70,000
Access the equity (i.e. cash value less outstanding mortgage) that’s tied up in your home
Avoid the fuss and costs of having to sell up and move out
More about the two main types of equity release – lifetime mortgages and home reversions see below
Types of equity release?
There are two basic types of equity release; Lifetime Mortgages and Home Reversions.
Lifetime Mortgages are a much more common form of equity release and there are two essential varieties of these, Interest Only or Roll Up.
With an Interest Only Lifetime Mortgage, there’s a fixed level of debt against your estate, but you’ll be making fixed payments for life and your estate will be reduced by the value of the loan.
With Equity Release Roll Up, there’s no payments or loss of income while you’re living in the property, but the debt increases constantly against your estate.
Home Reversions are an outright sale of a portion of the property to the lender at time the money is released. They own their share of any future growth in the property which is paid to them when its sold.
The Equity Release Advice Service
The Equity Release Advice Service is here to offer you financial advice from a highly qualified Financial Adviser, that’s informed by and based entirely around your needs and wants.
Your adviser will work alongside you to discover your goals, and then help you to meet them. They are not here to pester or hassle, but to research the market for you and offer you the most suitable alternatives. Remember, your decision is yours alone and can be changed before completion.
What can I use equity release for?
You can use equity release for almost any purpose, common uses include: expensive purchases such as cars and upscale motorhomes, family gifts such as paying for a wedding or a first deposit on a home, home improvements, garden makeovers, indulging in lifelong hobbies or taking up new ones, or ticking off extraordinary “bucket list” experiences in retirement.
Why choose the Equity Release Advice Service?
- Expert advisers will really get to know you, your needs and your future wishes.
- They have access to a panel of leading lenders as well as the entire equity release market, so will work to research and recommend the product that’s best for you.
- There’s no obligation on your part, and if equity release isn’t right for you, your adviser may recommend a suitable alternative to raise a lump sum.
- This is a specialist service provided by financial advisers, who are members of the AIR Group and will act in your best interests.
What are the steps involved?
Follow our 8 steps to complete your equity release
1. Register for an initial consultation
Register via the free2 website to request an initial contact.
2. Fix a time to talk – and get ready
The Equity Release Advice Service will be in touch to fix a date in your diary for a call.
Your adviser will then get ready for your free initial consultation – this will be based on the information you supply ahead of the first meeting.
3. Getting to know you at your first meeting
This is your first meeting, or initial consultation. Once it’s complete, your adviser finishes their fact finding and you agree whether you wish to proceed to the advisory meeting. The second advisory meeting is then put in the diary.
Ahead of the second meeting, your adviser will complete their research to find the best solution to meet your needs.
4. The Key Facts information
Once your recommendations have been made, you will receive Key Fact Information (KFI) documents, outlining the recommended product including all the costs associated with it. If you are thinking about equity release, you will need to appoint a solicitor to represent you and you should factor that into your budget. You can discuss this with your adviser.
5. Meeting 2 - advice recommendations
This is the advisory meeting where you can discuss your adviser’s recommendations in depth. Once all your questions have been satisfied, you then decide how to (or whether to) proceed.
6. Submitting your application
This is where your adviser submits your equity release application to your chosen provider.
7. The valuation process
The selected lender then arranges an independent valuation of your property. Assuming all is well, the lender will submit an offer.
8. Offer issued and money is released
You accept the offer and your solicitor carries out the required conveyancing activity. On an agreed completion date, the funds are released to your solicitor who will pay out any fees owed before paying the balance over to you.
From start to finish, the process usually takes 6-8 weeks. You should receive your payment after that time and be able to spend it as you wish.