To ensure that releasing money from your home is your best option you should always seek expert advice. In the meantime, we hope that the information contained within this page provides you with the information you need to take the next step and talk to us about your options.

Consider all the options

There may be numerous options available to you and all of these should be considered together with a lifetime mortgage

You may wish to consider the following alternatives: –

  • A traditional loan or mortgage. Is this affordable to you? You will need to budget for monthly repayments both now and in the future considering any changes in your circumstances
  • Downsizing – selling your existing property to move into a new one which is smaller or in a cheaper location. There are likely to be costs associated with this, however your new home may be mortgage free, leaving you financially better off
  • Your savings or other investments. Can you make better use of these? We can assist in reviewing this area for you to maximise your returns
  • Asking family and friends for help. The people who care for you most would rather help you out than see you struggle
  • Consider the rent a room scheme. Could you raise the monies required by renting a room to produce a regular income?
  • Check that you are claiming all the benefits that you are entitled to. You can check this with the Citizen Advice Bureau
  • Consider your retirement options, such as how to use your pension pot to secure an income. We can assist in reviewing this area for you to maximise your returns

The basic considerations

Whatever your reason for considering a lifetime mortgage, you should keep the following in mind: –

  • You can use any money released however you like, but you’ll have to repay any existing monies secured on your property first
  • ​The money you release is tax free, however it may affect your tax position
  • Releasing money may affect your entitlement to any means tested benefits
  • The most common way of releasing equity is via a lifetime mortgage plan. This is a loan secured against your home and you should always think carefully before securing any monies against your home
  • A home reversion plan is another type of plan available. This involves selling all, or part of, your property to the provider in exchange for a cash lump sum- please note we do not arrange home reversion plans
  • Equity release will reduce the value of your estate
  • A lifetime mortgage is expected to be a lifetime commitment. Typically, there are no monthly repayments, with the loan plus roll up interest being repaid when you pass away or enter long term care.
  • Early repayment charges may be applicable if you decide to repay the plan early
  • Our expert will explain all the costs involved with your plan including how the compound interest on a lifetime mortgage plan adds up and how this grows quickly
  • All our advice and recommendations are free until you decide to proceed with an application

Further considerations

We recommend that you also take the following into consideration when deciding whether equity release is right for you: –

  • It is important to discuss this with your family as equity release will reduce the value of your estate which will affect the amount of inheritance that you’re able to leave
  • We are sure that your family will have as many questions as you have so we would be happy for them to join you at any of the consultation meetings
  • We are regulated by the Financial Conduct Authority (FCA) and are members of the Equity Release Council (ERC), and therefore you can be assured that the advice we provide you is within the strict regulations designed to keep you safe
  • All lifetime mortgage plans that we recommend must be from providers who are members of the ERC. This means that all plans have: –
    • the right to stay in your home for the rest of your life, or until you move into full time long term care.
    • a no negative equity guarantee – you will never owe more than the value of your home
    • the right to move home – you can take your plan with you if you move to a property that is suitable to that provider
  • If a lifetime mortgage isn’t the right solution for you then we will ALWAYS tell you.