Media and downloads on equity release
Please take the opportunity to download and review these really useful advice and
information sheets about equity release.
Equity Release videos
We have created a series of videos offering insights and guidance to equity release please
take time to view each and if you have any questions please get in touch with Equity Select
we will be here to help. in your choices on equity release.
Popular reasons for Equity Release
Equity release allows homeowners over the age of 55, to release tax free funds from their home, without having to sell it. Most clients use them to boost their retirement finances, however, they can be used however you wish. Some of the top reasons for equity release are: Home improvements, paying off existing debt, gifting to family and friends and generating more retirement income. In this video we cover some of the popular reasons our clients have used equity release.
Equity Release Home Reversion Plans Explained
Home reversion plans make up a small percentage of the equity release market. They are regulated by the Financial Conduct Authority just like Lifetime Mortgages however they work differently. In this video we explain how they work.
Equity Release Can I Leave An Inheritance?
Many homeowners wish to leave their family an inheritance when they are no longer with us. Some Lifetime Mortgage providers offer “Inheritance Protection” this is an option built into the mortgage that allows you to leave a guaranteed inheritance for your family. With a Home Reversion plan, the percentage of the property that is not sold to the provider will automatically form part of your estate and can be left as an inheritance as well.
Equity Release Interest Rates
A common concern in the past with equity release was that interest rates worked on a variable basis. This means they could go up or down depending on the market. The Equity Release Council set a standard that all Lifetime Mortgages must either come with a Lifetime Fixed Rate or, if the interest rate was variable, then it must be capped at a certain rate for the life of the mortgage. Most clients opt for the Lifetime Fixed rate option as this guarantees that the rate of interest they will pay, is set from day one and never changes.
Equity Release “No Negative Equity Guarantee”
One of the standards set by the Equity Release Council is called “No negative equity guarantee” put simply, this means that you or your estate will never owe more than the value of the property. Equity release is repaid when the last applicant moves into long term care or passes away. At this point the property is sold and the equity release is repaid. If after the selling fees and legal fees have been added to the outstanding balance, and there is a shortfall, the equity release provider will write off the deficit. This means no debt will be passed on to you or your estate.
Paying For Equity Release
Lifetime mortgages have interest attached to them. Where Lifetime mortgages differ to traditional mortgages in terms of interest, is how the interest is paid. There are several options to choose from, you can opt to pay the interest in full each month, you can opt to pay some of the interest each month, you can opt to pay the interest some months and not others. Alternatively, you can opt not to pay the interest at all, and simply add it to the loan. At the end of your equity release plan, the original loan is repaid along with any unpaid interest which has accrued.
Equity Release With An Existing Mortgage
A common question that comes up when speaking to clients about equity release is their existing mortgage. Can I release equity if I still have a mortgage? With all equity release products any existing loans secured against your property must be repaid, you can use the equity release funds to do this. If the amount that you can release is equal to or greater than your current outstanding mortgage balance, then yes you can use equity release to clear the mortgage balance, any additional equity that is available is for you to spend however you wish.