Equity Release Advisers

Expert Equity Release adviser in Brighton

If you’d like to talk to us about equity release, your local Mortgage Saving Experts advisor is the best person to contact. Our team of equity release advisors will be delighted to discuss your option whenever is convenient for you. They have a wealth of experience and are industry-qualified to answer all of your questions, big or small.

Your initial consultation is complimentary, and you are under no obligation to continue. We also recommend that family members attend to learn about the ramifications of equity release and ask any questions they might have.

Do you want to learn more about your local advisor? To read their biography and see what their satisfied customers have to say about them, click on their image below. You can also schedule a meeting with them whenever it is convenient for you.

We are dedicated to assisting you in determining the form of equity release plan that is best for your needs, as well as locating the best prices, cashback, and maximum releases available. We are regulated equity release specialists who can help you compare the best offers from the UK’s top equity release companies. Your quotations are given completely free of charge and without any obligation.

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What is Equity Release?

Equity Release is a method of gaining access to the money locked up in your house, also known as equity, without having to relocate or downsize. Monthly contributions are not needed but you can make payments if you wish, and any tax-free money you earn is yours to use as you see fit.

There are several different forms of Equity Release to choose from. You can choose between a package that gives you a single lump sum or one that allows you to withdraw money in instalments (drawdown). You do not need to make any payments to them so the interest is be rolled up and applied to the loan. Alternatively, you might choose to make monthly interest payments to keep your debt from increasing.

You may use Equity Release to stay in your home for the rest of your life or until you need long-term care. The most common form of Equity Release plan is a Lifetime Mortgage, which allows you to release equity while keeping control of your home. Alternatively, if you are 65 or older, a Home Reversion Plan eliminates rolled-up interest payments in exchange for a tax-free lump sum. It allows you to remain in your home and paying no rent.

How much money could I free up?

The amount of money you can get out of your house is normally determined by your age, its worth, and any eligible medical conditions or lifestyle factors you might have. In some cases, you will release up to 60% of your home’s worth. You may opt to release this lump sum all at once or in instalments to lower the loan’s interest rate.

The tax-free money can be used on whatever you want, but it must first be used to pay off any existing mortgage on your home.

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Why you should seek equity release advice

Seek equity release advice before taking out a lifetime mortgage to ensure you make the right decision for yourself and your family.

Equity release is a useful method for releasing cash from your home in retirement. Some retirees need additional funds to cover living expenses, while others use equity release to purchase a second home.

If you’re unsure about how to release equity from your house, talk to a licenced equity release advisor who will clarify what equity release is and how it works, as well as walk you through the different alternatives.

Here are five reasons you should seek equity release advice:

1. There is a huge variety of products available

The number of equity release items on the market has exploded in recent years due to increased demand. You will find the product that best fits your needs by finding equity release advice.

Lifetime mortgages and home reversion plans are the two main types of equity release items.

A lifetime mortgage has a fixed rate of interest. You cannot pay it off in monthly instalments, unlike a traditional repayment mortgage. Instead, your loan is rolled up, which means your interest is based on a growing sum, and you only pay off your mortgage when the house is sold. You do have the option to make payments on some of the products which will slow down the amount of increase in mortgage balance therefore increasing the amount of Inheritance you may wish to leave for loved ones. A Home Reversion Plan works by an equity release provider buys a fixed share of your property from you. . You can still live in that property until the second or only person in the property either passes away or goes into full time care.

An equity release advisor will clarify the differences between the products and help you choose the right one for you.

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2. Equity release advice can save you money

Equity release advice will help you locate a mortgage with the best equity release interest rate and fees.

Some equity release goods, for example, charge you a fee if you pay off your loan early. You can downsize and pay off the mortgage penalty-free if you find a product with no early repayment charge.

Other products allow you to pay interest on a monthly or ad-hoc basis to keep your overall debt low. You can also select a drawdown product that drip-feeds the equity to you in phases, so you only pay interest on the money you’ve taken. You can ask for the drawdown money whenever you wish, and that money will be available the following day in most cases

A consultant will help you find ways to save money and find items with the features you need.

3. The cost of equity release can be high

The debt on certain forms of equity release schemes builds up over time, and the loan is repaid when you die or enter long-term care. The selling of the home normally accomplishes this.

Since interest compounds, the total amount owed will increase. If you live for a long time after getting a mortgage, you will find that your debt exceeds the value of your home. This is referred to as negative equity. The products Mortgage Saving Experts offer will not allow you to go into Negative equity because we are members of the Equity Release Council and this is one of their codes of practice.

It’s important to plan with an Equity Release Council-approved lender to avoid falling into negative equity. These lenders promise that you will never owe more than your home is worth by offering a no-negative equity guarantee.

An equity release advisor will help you choose items that will protect your estate from unnecessary costs. They’ll also give you a detailed estimate of how much the plan will cost over the course of your life so you can see the financial implications of your decision.

4. Protect your family’s inheritance

If you take out an equity release product, you will have less to leave as an inheritance to your family. Your house will most likely be sold to pay off your debt, and depending on how much interest has accrued and what your balance will be at that time.

An equity release specialist will show you how to get the most out of your properties. Some equity release products, for example, allow you to set aside a portion of your home’s equity as a guaranteed inheritance.

Before you take out an equity release product, talk to your family about your plans. Your family will choose to assist you financially to protect their inheritance in the future.

5. Equity release may not be suitable for you

Before recommending this form of product, and equity release advisor will weigh all of your choices. You may choose to downsize or borrow in other ways, such as using your mortgage or asking for relatives’ support.

It’s crucial to know your current needs and potential desires before issuing equity. This is because using a portion of your property resources now could decrease the value of your estate in the future, potentially affecting your eligibility for means-tested benefits.

If you believe equity release is right for you, an expert adviser will gladly walk you through the process and make suggestions during a no-obligation consultation. If you plan to go ahead with a product that the adviser suggests, they will manage the application with your provider and make the process as simple as possible.

FAQs

What is an equity release plan?

In recent years, a slew of new plans and providers have entered the industry. Equity release plans have become common for homeowners 55 and older to access the tax-free cash locked up in their homes. You don’t have to sell or move out of your home to take advantage of an equity release plan. You don’t have to make any payments (although some policies allow you to do so if you want to reduce the rate at which interest accrues), and the money is yours to use however you want.

Will I still own my home?

Yes, you can always own your home if you choose a lifetime mortgage (the most common form of equity release plan). You will have the assurance that for any Equity Release Council-approved plan, you will be able to stay in your home until you die or need long-term care. Your home is sold at this stage, and the original loan amount, plus interest, is repaid. Any money that is left over is given to you or your beneficiaries.

How much cash can I unlock?

The amount of money you will release from your home with an equity release plan is usually determined by your age and your home’s value. If you have a qualifying health condition (many of which are quite common, such as diabetes, high blood pressure, or high cholesterol) or a history of smoking, some providers allow you to release even more money. Before undertaking a search for the best quotes for you, your chosen expert will take the time to determine whether you are eligible for an enhanced equity release package. (Unless you are using a calculator)

Will I owe more than my home is worth?

No, all providers who sign up to the Equity Release Council- come with a promise of “No Negative Equity.” This means that you will never owe more than the value of your home, regardless of what happens to house prices in the future.

Will equity release impact my spouse or partner?

If you are married, in a civil partnership, or have a partner, and both of you take equity release, you can stay in your own house until you die or need long-term care. This implies that if one of you needs to go into care and the other wants to stay at home, you can do so.

If you are the sole owner of the property and have taken out equity release, your spouse, whether married, in a civil partnership, or not, may not be able to stay in your house when you pass away or enter long-term care.

What happens if I need more money in the future?

If you need any additional funds in the future you could:

  • – Access money from a pre-agreed reserve facility.
  • – Receive additional equity release advice and apply for a further advance from your existing lender.
  • – Receive additional equity release advice and change plan/lender to one who offers you the funds required.

It is critical that you re-evaluate all options before borrowing any further money through an equity release plan.

Can I change my equity release plan?

If you’ve previously taken out an equity release plan, you might be able to switch to a more affordable one. If the value of your house has increased, you may be able to release even more money.

Can I still take out an equity release plan if I have an outstanding mortgage?

Yes. If you have an outstanding mortgage on your house, equity release providers will allow you to release cash from it; however, all providers will want you to use the money to pay off the outstanding mortgage first.

Am I able to end the plan early?

Although an equity release plan is designed to continue for the remainder of your life, there are methods to return the plan early.

If you have a lifetime mortgage and want to pay it off sooner than expected, you must pay the entire amount due, including the loan and interest. There could be a penalty if you pay off your loan early. Before you embark on any plan, you should double-check this.

Can I still leave an inheritance?

Although all equity release plans may diminish the amount you leave as an inheritance, there are plans that allow you to leave an inheritance to your loved ones after the plan ends. You can ringfence a percentage of your estate using these plans, and it will be secured, ensuring that your children receive the legacy you desire.

What state benefits will I lose with an equity release plan?

The only state benefits to which you may lose eligibility are those that are based on your income. These advantages are for people who have a modest income and a small amount of money saved.

Means-tested benefits include things like Pension Credit and Council Tax Credit.
The funds will be omitted from the income aspect of the computation because money received from equity release is not classified as income.

At the moment, the maximum amount you can save is £16,000. As a result, any money you receive from an equity release that exceeds this threshold will cause you to lose your claim.

There are lower limits below which you may begin to lose some of your rights.

As a result, your advisor should investigate any benefits you may be eligible for, as well as how any equity release may effect this.

How do you decide what initial advance, and what reserve I should have?

The term “first advance” refers to money that you will receive right now. A reserve facility is a set amount of money that you can borrow from the lender in the future.

As an initial advance, it’s ideal to just release enough money to cover any expenses you expect to have in the near future. Any funds you anticipate needing in the medium to long term should be put into a reserve account.
This is because you will only pay interest on the money you advance; money in a reserve facility does not earn interest.

As a result, you’ll pay less interest, potentially saving you and your estate hundreds of pounds.

Can I sell my house if I have taken equity release?

If you decide to sell your home, many typical equity release programmes allow you to transfer your mortgage to a new property, as long as the lender authorises the property beforehand. You may be forced to repay a portion of your mortgage early in this case, which could result in early repayment penalties.

Do I qualify for equity release?

This is determined by the age of the youngest individual listed on the title papers, as well as your property requirements.

The minimum age for lifelong mortgages is 55, while the minimum age for a home reversion plan is 65. In the equity release market, the minimum property worth accepted is now £70,000.

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For more details, call our Mortgage Saving Experts today.

Want to know more?

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