Equity Release Advice | Understand your options before releasing money from your home

What is equity release?

Equity release allows you to access some of the value held in your home while continuing to live there.

The two main forms are a Lifetime Mortgage and a home reversion plan. They work in very different ways, so it is important to understand the effect on your property ownership, future choices and estate.

Equity release is not simply a standard mortgage taken in later life. Your adviser will consider:

• What you need the money for
• How much you need now and in the future
• Whether you want to make payments
• Your existing mortgage and other borrowing
• Your income, savings and other assets
• Your entitlement to means tested benefits
• Your plans for moving or paying for care
• How much you want to leave as an inheritance
• The alternatives available to you

We will use this information to establish whether equity release is suitable before recommending a product.

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Why use an equity release adviser?

Equity release advice is about much more than identifying how much money you can borrow.

A provider can explain its own products. An equity release adviser will assess whether equity release is suitable and compare the products available through the service.

At Your Mortgage Expert, we will help you understand:

• Whether equity release meets your actual objective
• Whether you need the full amount immediately
• Whether a drawdown arrangement would reduce interest costs
• Whether you can afford to make voluntary or regular payments
• How the interest builds up
• How much could remain in your estate
• Whether early repayment charges apply
• How moving home could affect the plan
• How the money could affect your benefits
• Whether another mortgage or financial option is more suitable

You will receive a personal recommendation based on your circumstances.

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How does equity release affect your estate?

A Lifetime Mortgage is normally repaid from the sale of your property when the last applicant dies or moves permanently into long term care.

The amount repaid includes the money borrowed and any interest or charges that have been added. This leaves less of the property value available for your beneficiaries.

With a home reversion plan, the provider owns the share of the property you sold. Your estate receives the value of the share you retained when the property is eventually sold.

We will show you how the proposed plan can affect the value remaining in your estate. You can also involve your family in the conversations where you are comfortable doing so.

Can equity release affect your benefits?

Receiving a lump sum or regular withdrawals can affect your entitlement to means tested benefits, grants and local authority support.

The effect depends on the amount released, how the money is held or spent and the benefits you receive.

Your adviser will identify when a specialist benefits assessment is needed before you proceed.

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Helping family with equity release

You can use equity release to provide financial help to children or other family members, including support with a property deposit.

Before doing so, you need to consider:

• Your own future income and spending needs
• Unexpected home, health and care costs
• The interest that will be charged on the amount released
• The effect on your estate
• Whether the gift could create tax, legal or benefits implications
• Whether all affected family members understand the decision

Your needs must remain central to the recommendation. We will not recommend releasing more money than your plans and circumstances support.

Speak to an equity release adviser

How equity release advice works

1. Tell us what you want to achieve

We will discuss why you are considering equity release, how much you need and your future plans.

2. We review your full circumstances

Your adviser will consider your property, income, mortgage, savings, benefits, family circumstances and estate wishes.

3. We compare the alternatives

We will consider other mortgage options, downsizing, existing resources and whether releasing a smaller amount would meet your needs.

4. You receive a personal recommendation

We will explain the recommended product, interest rate, fees, features, risks and alternatives.

5. You receive a personalised illustration

The illustration will show the amount released, interest, fees, projected future balance and effect on your property equity.

6. You receive independent legal advice

A solicitor will explain the legal effect of the arrangement before you complete.

7. We manage the application

We will submit the application, deal with the provider and valuation requirements and keep you updated throughout the process.

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Why choose Your Mortgage Expert?

Equity release affects more than your current bank balance. It affects your property, future flexibility and the amount you leave behind.

When you use Your Mortgage Expert, you receive:

• Clear explanations without unnecessary jargon
• A full assessment of your objectives and circumstances
• Consideration of alternatives before equity release is recommended
• A comparison of products available through our service
• A personalised recommendation and illustration
• Help understanding interest, charges and product conditions
• Support with the application and provider requirements
• One point of contact throughout the process
• The option to involve your family in discussions

Our role is to help you make an informed decision that reflects both your immediate plans and your future needs.

Understand your equity release options

Speak to us before making a long term commitment against your home.

We’ll establish what you want to achieve, compare the available routes and explain the costs and risks clearly.

Speak to an equity release adviser