We offer bespoke 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.
Equity Release 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
- Right to make repayments
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
- Initial advice is provided at no cost to you and without obligation. Only if you choose to proceed and your plan completes, would a typical advice and administration fee of up to £1,500 be payable.
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.
Best Buys:
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 80 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 Wednesday 27th November 2024
| Loan to Value | Rate (Fixed for Life) | Overall Cost For Comparison (APRC) | Early Repayment Charges | Product Fee |
|---|---|---|---|---|
| 15% | 5.88% | 6.04% | Apply for 8 years – 8% in year 1, reducing by 1% each year down to 1% in year 8 | £Nil |
| 30% | 5.90% | 6.06% | Apply for 8 years – 8% in year 1, reducing by 1% each year down to 1% in year 8 | £Nil |
| 40% | 6.18% | 6.36% | Apply for 15 years – 10% in year 1, reducing by 1% each year down to 1% in year 10, remaining at 1% until year 15. | £Nil |
| 45% | 6.53% | 6.73% | Apply for 8 years – 8% in year 1, reducing by 1% each year down to 1% in year 8.
|
£995 |
*15 year gilt yield (close on 07/11/24) – 4.75%
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.
