Things to think about - Equity Release Works

The importance of advice

You must get advice from a fully qualified, specialist adviser before releasing tax-free cash from your home. They will tell you if equity release is right for you and make a recommendation on the best plan. Your application won’t be considered without this.

At Equity Release Works we offer UK whole of market advice without obligation. You can find out if it’s right for you and get a personalised recommendation without it costing you a penny. Should you decide to go ahead we charge a fee of £995, payable only on completion.

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Equity release at a glance

Spend the money however you like

Popular uses include repaying debts or an interest-only mortgage, making home improvements and helping loved ones.

Get a fixed low rate for life

Interest rates have dropped in recent years with many plans now below 3%. This is fixed for the life of the plan. The rate you get will depend on your individual circumstances.

Still provide an inheritance

To be sure of leaving an inheritance for your loved ones some plans enable you to protect a percentage of your property.

No negative equity guarantee

Whatever happens to the value of your home you can never owe more than the price it’s sold for, meaning no debt can be passed on.

Repayments your way

There are typically no monthly repayments to make, but with some plans you can make payments to reduce interest.

Live in your home for life

You have the right to live in your home (rent free) for life: until you pass away or move into long-term care.

What is equity release?

Things to think about before going ahead

Your adviser will discuss these things with you as part of our advice process:

Home ownership – with a lifetime mortgage, the most popular form of equity release, you’ll still own your home and can benefit from any increase in value. A home reversion plan involves you selling a percentage of your property.

Secured loan – a lifetime mortgage is a loan secured against your property which is repaid when your plan comes to an end. Usually, that’s when you, or the last remaining applicant, either passes away or enters long-term care. You should always think carefully before securing a loan against your home.

Passing on an inheritance – taking a plan reduces the value of your estate. If leaving an inheritance for your loved ones is important to you then your adviser can recommend a plan which enables you to protect a percentage of your property.

Tax & benefits – equity release may affect any means-tested benefits you’re eligible for and your tax position.

Repayments – there are typically no monthly repayments to make, but if you are able to then some plans allow you to make repayments to reduce the amount of interest over the life of the plan.

Compound interest – lifetime mortgage interest rates are fixed for life but it’s important to understand roll-up or compound interest can quickly add up. Your adviser will be able to give you a personalised illustration of this.

Safeguards – all of the plans we recommend meet the Equity Release Council standards, so that you:

Have the right to remain in your home for as long as you want, or until you move into full time residential care
Have the freedom to move to another property without financial penalty (subject to criteria)
Will never have to repay more than the value of your home with the no negative equity guarantee

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