Could Equity Release Fund Your Future?
"Using your property wealth to realise your dreams or even help your loved one achieve theirs is growing in popularity. Many savers may not want to use up their hard earned savings, so a lifetime mortgage could add another string to your bow." Anna Bowes - Savings Champion Founder
The long-term growth in property prices across the country means that over-55 UK homeowners are changing the way they view their property wealth in retirement, with over £3bn pounds worth of equity released last year alone1.
The desire to convert on-paper wealth into readily accessible capital has the seen the popularity of Lifetime Mortgages soar.
With a Lifetime Mortgage you could potentially unlock a tax-free cash lump sum from your home.
Unlike other equity release products, a Lifetime Mortgage guarantees that you retain full ownership for life and there are no required monthly repayments.
Additionally, thanks to the no negative equity guarantee, there is no chance of owing more than the value of your home or being able to pass on any lifetime mortgage debt.
If you are an over-55 UK homeowner, why not find out today if your equity could be the key to making your financial ambitions a reality.
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Responsible Equity Release is a trading style of Responsible Life Limited. Responsible Life Limited is Authorised and Regulated by the Financial Conduct Authority and is entered on the Financial Services Register under reference 610205. Only if case completes will Responsible Life Limited charge an advice fee, currently not exceeding £1,490.
1. Source: ERC ‘Equity release records broken as unprecedented Q4 activity sees 2017 lending reach £3.06bn with annual growth at a 15-year high’ 23.01.18
Why Responsible Equity Release?
Savings Champions have partnered with award-winning equity release specialists Responsible Equity Release.
Responsible Equity Release have been providing the nation’s over-55 homeowners with quality later life financial solutions since 2010.
Like us, they are passionate about what they do and combine modern financial solutions with good old-fashioned customer service.
Responsible Equity Release have a nationwide team of equity release experts on hand, ready to discuss your needs and wants for your financial future.
All the providers they recommend are approved by the Equity Release Council, meaning that all customer-focused safeguards come as standard.
This expertise is vital as accessing some of the equity from your home with a Lifetime Mortgage may affect the value of your estate and your entitlement to means-tested state benefits. Plans are available that can help you to mitigate these impacts.
Or call 0800 756 3958
'The Best Advice I've received so far'
‘I was advised by responsible equity release two years ago not to take out equity release until my 65th birthday. I’m now 65 and have done the deed and am thankful for their advice.’
Clearing the confusion around equity release
Myth 1: You no longer own your own house
Contrary to popular belief, taking out a Lifetime Mortgage does not affect the ownership of your home. Your home remains your own for life. The mortgage, plus the interest accrued, only gets repaid once the property stops serving as your primary residence – when you move into long-term care for example.
Myth 2: The money you release is subject to tax
Despite what as many as 55% of respondents in the above report believed, the money you release from your home is tax-free. It can be spent however you see fit, from providing an early inheritance to your family to travelling the world.
Myth 3: You can end up owing more than the value of your home
This is completely untrue. The ‘No Negative Equity Guarantee’ ensures that your estate will never owe more than the value of your property when it is sold. Once the property ceases to be your primary residence and is sold, the sale proceeds are used to pay off the Lifetime Mortgage and any interest that has accrued. Once the loan has been repaid, any remaining funds will be paid to you or your estate. In the unlikely event that the property sells for less than the amount of the loan, the remaining balance will be written off.
Myth 4: You can’t release equity from your home if you have an outstanding mortgage
False. You can still release equity from your home if you have an outstanding mortgage, provided that the tax-free funds you release or other savings you have are used to pay off the outstanding mortgage balance. In fact, clearing an existing mortgage balance is one of the most popular uses of a Lifetime Mortgage.
Myth 5: You must make monthly repayments with a Lifetime Mortgage
Despite the name, a Lifetime Mortgage features no required monthly payments. As with any other borrowing, an interest rate is charged. Any interest you choose not to pay is simply added to the total and paid when you or your heirs eventually sell the property. However, should you wish, some plans allow you to make voluntary, penalty-free payments of up to 10pc per year of the amount you borrowed.
It is important to consider that a Lifetime Mortgage may reduce the value of your estate, and the tax-free cash you receive may affect your entitlement to means-tested benefits. Your adviser will provide you with a personalised illustration of the features and risks to you.
If you think that your golden years could be given a shine with a tax-free cash boost, then why not use our free online calculator to see how much you could release from your home?
Dispelling the myths
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Contact our Information Team
Our Information Team are here to provide you with initial estimates, facts and figures and, if ready, arrange a free no-obligation appointment with a local adviser.
If you are at the earlier stages of your enquiry, we can help you plan your journey appropriately. This is completely free, and you are not committed to anything.
Have a no-obligation face-to-face appointment
One of our fully qualified equity release specialists will visit you for a face-to-face appointment to run through a personal illustration and help you choose the right plan.
This is completely free, and you are not committed at this point.
Make an application
If you decide to proceed with our recommendation, then your adviser will be on hand to assist with the completion of the application form and associated paperwork.
Once all the paperwork is completed, the lender will arrange for your property to be surveyed, after which you will receive your mortgage offer.
Receive your tax-free cash
A solicitor of your choosing will talk you through the terms and conditions of your offer in detail before you commit to anything.
After that, your solicitor will arrange for your plan to complete and transfer the funds to you, after any secured charges and mortgages have been cleared. Unless you have had to pay for the initial survey, only at this stage will you need to pay any fees.
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