Frequently Asked Questions | Equity Finance

Q. Do I qualify for Equity Release?

A. If you are over 55, own your own home with little or no mortgage on it then the answer is probably yes. The amount you are able to release will depend on your circumstances.

Q. Is there any restriction on what I can do with the money I raise?

A. No. But you should think carefully about what you will spend it on and always make sure that you never borrow more than you need.

Q. Will I still own my house?

A. Yes. We only advise on lifetime mortgage based products. Home reversion plans or sale and lease back schemes are different and we do not recommend these products.

Q. What happens if the house value changes?

A. You still own your home so will continue to benefit from any increase in value. We only use lenders who offer a ‘no negative equity guarantee’ so you will never owe more than your house is worth.

Q. Does it affect my benefits or tax position?

A. Releasing cash from your home can sometimes affect state benefits and possibly your tax position. We will calculate the effect, if any, and explain those to you before you make any decision.

Q. Will I be able to move house?

A. Any equity release plan we recommend gives you the option to stay in your home for life. However, if you wish to move it may be transferred to a new property as long as it provides acceptable security to the lender.

Q. What happens when I die?

A. Any equity release plan we recommend allows you to stay in your home for as long as you wish. If your property is in joint names then this would still apply to the remaining partner. Once all borrowers have died the property would then be sold to repay the lender and any remaining money would go into your estate.

Q. What about if I need long-term care?

A. If one of you needs care in your home or goes into a care home then the other can continue to live in the property as normal. However the plan will normally end should you both leave to go into a care home. The house would then normally be sold and any money left over after paying off the loan would belong to you.

Q. Can I lose my home?

A. Not normally. If you have a lifetime mortgage where interest is rolled-up then you cannot lose your home due to missed payments because there are not any.

Q. What happens if I want to pay off the loan early?

A. You can repay the amount you owe at any time but the lender may make an early repayment charge. If they do make such a charge it will be stated clearly in the paperwork.