Living in Surrey, but frequently visiting Lymington – where my wife and I have joined a boat-share scheme – I would be more than happy to arrange to meet up and answer your questions about Equity Release.
I chose to make my career in Financial Services after studying Finance at university, and still love what I do: owning and running my company, seeing clients and giving them advice that helps optimise their financial situation. Through my work, I am lucky to meet people from a range of backgrounds and with very different financial requirements – and my role is to bring their goals to fruition. If you have wondered about equity release, do get in touch so I can tell you what is possible without further obligation.
A: Being regulated by the Financial Conduct Authority (FCA), all equity release products are very safe for the borrower. As members of the Equity Release Council, Access Equity Release follows strict terms and conditions and safe and ethical practices around equity release.
A: Yes – your mortgage can be transferred to your new home, although there are generally penalties if you move within the first five years but not after that. I will explain the terms of any product I recommend to you.
A: Although the outstanding debt from your lifetime mortgage will have to be repaid when your property is sold, some equity release loans make it possible to protect a fixed sum in your home’s value so you know you will have something to leave for your family.
A: A lifetime mortgage is a type of equity release product and is by far the most popular equity release plan. The other is called a home reversion scheme.
A: No. Although the overall amount of your home’s value will be reduced by the sum you have taken as equity release, we will only recommend plans with a ‘no negative equity guarantee’, meaning the outstanding debt on your property will never exceed its value when it is sold.
A: The simple answer is yes. Your home remains in your name until you die or move into long-term residential care.
A: The loan is repaid when you move into long-term residential care or die. In the case of joint applications, it is repaid when the last applicant moves out or passes away.
A: Yes, they are – and increasingly so as the market becomes more competitive. Where flexibility is a priority, I can find you a plan offering a choice of ways to pay the interest on your loan or reduce its overall size without penalties being applied.
A: If you have an existing mortgage, you can use some of your equity release to repay this. However, you cannot keep an existing mortgage and take equity release at the same time.
A: Many people choose to downsize to a smaller property and take their equity that way. Other options are a standard residential mortgage or a Retirement Interest Only mortgage. We will look at and discuss all options as part of this process of evaluating equity release.
A: These are plans that set aside a pot of money from your equity – a reserve – from which you can take out the money as and when you need. The advantage is that the reserve remains in place for as long as you hold the plan. The interest rate that you pay on a drawdown will not necessarily be the same rate that was in force when you set aside your reserve – however, the rate on each drawdown will be fixed until the loan is repaid. In theory, you could be paying different interest rates on multiple drawdowns you take.
A: This is a question we would explore together as means-tested benefits could be affected, and you, therefore, need expert advice if this is a concern for you.
A: No – it is yours to use as you please. Popular choices include home improvements, gifts to family, debt repayments, and that once-in-a-lifetime holiday!
A: No – it is completely tax-free.