Equity Release FAQ...

At Responsible, we understand you may have lots of questions about the equity release process. In this FAQ we attempt to predict what they are and give you a solid answer.

How old do I have to be to take out equity release?

With an equity release plan, you have to be aged 55 years or more. For certain types of home reversion plan you may have to be 65 and over. If you are one half of a couple, it is the age of the youngest half that counts towards this requirement.

Can I have a mortgage and an equity release at the same time?

With an equity release plan, you can't have a mortgage or any other loan secured on the property at the same time. Many people take out an equity release plan in order to clear any existing mortgage from their property - and with it the stress that comes with having to make those monthly mortgage payments.

Do I have to make monthly repayments if I take out equity release?

No, quite the opposite. Unlike a traditional mortgage, an equity release plan is designed to offer you a secure and steady income throughout retirement. You do not have to make any monthly repayments for the lifetime of the equity release plan. The plan does not have to be repaid until the house is sold when the last person on the plan passes on or moves out of the home and into long-term care.

Click to Read Equity Release FAQ Part 2...

 

What are Equity Release Schemes, Lifetime Mortgages and Home Reversion Plans?

Equity release is an agreement between a homeowner (55+) and a provider that allows the homeowner to unlock the money tied up in their home.This money is tax-free and helps the homeowner to enjoy the retirement that they have worked hard for.

If you take out equity release you are still able to carry on living in your home for as long as you like.For many, their home is their greatest asset. Equity release schemes can turn this asset into extra cash at a time when income may be fixed and low.

Please click the link for more information regarding the different types of equity release mortgages.

What are the benefits and implications of equity release and home reversion plans?

1) Retirement can be a time of fixed income and many people have valuable homes but little spare cash. Equity release can provide tax-free cash to help alleviate this problem.

2) You can use the cash you release to spend as you wish.

3) You may want to use the money to take that holiday youve always dreamed of, perhaps visiting family that you havent seen for years.

4) You might want to buy a new, more reliable car to help you get around. You could even use the extra funds to help support your family, children or grandchildren.

5) Many people simply use the money they release to make up the shortfall some people experience when they retire.

6) Equity release could affect your entitlement to some state benefits and may affect your tax position.

7) All equity release plans will reduce the value of your estate.

What is the procedure for equity release?

1. Complete the equity release calculator above, entering all your details. We will then tell you roughly how much equity is available in your property, based on your age, your property value and the maximum amounts offered by the major equity release providers.

2. If this has inspired you to learn more, you can request your no-obligation brochure on equity release. This will provide you with more information on how equity release works, the things you should consider and what to do next if you would like to discuss your options with an equity release specialist.

3. After reading the brochure, if you would like to discuss equity release further, simply contact our trusted partner using the details provided in the brochure.

4. Alternatively call 0800 524 4853 to find out the answers to any questions you may have about the equity release process. It is a free and no obligation service. It can help no matter what stage of enquiry.

Are you still thinking how do I release equity?

What do past visitors have to say about us?

Testimonials

I found your website and your ethos to be just up my street. I particularly like the way you explained SHIP and its relationship to equity release
Mr. Ingrid

Your equity release calculator helped me to understand where I stood and what my options were. The free guide I received helped me to explain what I had learned to my husband so a big thanks is in order.
Mrs. Kinsel

What is the criteria to release equity in the UK?

In order to release equity on a home, the following criteria usually needs to be met:

- To qualify you must be aged 55-95.

- The home in question must be your permanent main residence and lived in by you for over six months of the year.

- You must own the home from which you are releasing equity.

- The home must be worth at least 70,000.

What is the code of conduct for equity release?

An organisation called SHIP are responsible for laying out the code of conduct to the equity release providers in the market.

Independent financial advisers can explain who are SHIP members and which member may offer the plan most suitable to your needs.

Click the link to learn more about SHIP equity release