We offer bespoke independent advice on later life lending solutions, which includes equity release, from our team of fully qualified advisers.
Equity Release is available to those aged 55+ and involves borrowing against the value of a property using a lifetime mortgage. The loan is only typically repaid when the property is sold and the capital released is tax free.
Borrowers can choose to pay nothing back until the property is sold, they can choose to make fixed monthly interest payments, or they can choose to make voluntary repayments. Even if a client does elect to make repayments, there is no affordability criteria, which is a major benefit to equity release plans.
Interest rates for equity release products are at some of their lowest levels and there are currently over 700 equity release plans across the market. They can only be recommended by advisers qualified in this field and clients will also need to seek independent legal advice from a lawyer. In addition, we always recommend that any beneficiaries be informed/involved where possible.
Equity Release can help clients with:
- Supplementing income in retirement
- IHT strategy/planning
- An alternative to drawing from a pension fund
- Gifting to children/beneficiaries
- Extending secured loans into retirement
- Aspirational objectives such as home improvements or holidays
All the plans that we recommend will guarantee borrowers:
- The right to live in the property for their lifetime
- The right to move to another property
- A ‘no negative equity’ guarantee
- 100% ownership of their property
What we offer:
- Research which is free of charge and without obligation
- Confirmation of whether an Equity Release plan is suitable
- A no obligation report to confirm our recommendation, tailored to the client’s circumstances and requirements
- Time to decide and reflect without pressure to make a quick decision
- Consideration of alternative traditional Later Life Lending products where applicable
Who we work with:
- We have a growing list of professional introducers, including several of the largest Accountants, IFAs and Wealth Managers in the UK. Having worked with these companies for many years, they trust us to provide the most suitable advice to their clients.
Below is an up-to-date assessment of some of the ‘best buys’ that are currently available in the market based on a married couple, both aged 75 and in good health (note that lower rates and/or larger loans may be available for those clients with a reduced life expectancy).
Last updated 6th May 2022
|Loan to Value||Rate (Fixed for Life)||Overall Cost For Comparison (APRC)||Early Repayment Charges||Product Fee|
|15%||3.57%||3.63%||Apply for 8 years – 5% years 1-5, 3% years 6-8. No penalty from year 9||£895|
|30%||3.74%||3.80%||Apply for 8 years – 8% in year 1 reducing to 1% in year 8. No penalty from year 9||£0|
|40%||3.93%||4.00%||Apply for 8 years – 8% in year 1 reducing to 1% in year 8. No penalty from year 9||£995|
|50%||5.17%||5.29%||Apply for 8 years – 7% in year 1 reducing to 1% in year 10. No penalty from year 11||£895|
These figures are correct at the time of going to the Internet.
According to a recent study, 9 out of 10 people aged 55 to 80 do not fully understand how equity release works, highlighting the need for borrowers to ensure they seek independent specialist advice to find out whether it should be part of their retirement planning.