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FAQs

Here are some of our most commonly asked questions however if there isn't an answer to your question please click here to contact us.

Will I still own my house?

Yes - your house remains your home for life. Unlike a conventional mortgage, if you are not able to make mortgage payments, then the lender will make them for you and the loan plus interest is repaid when you either move into long-term care or die.  

Can I make payments, or even re-pay the mortgage at some later date?

Yes - with most plans you can make payments of up to 10% per annum, this will mean repaying the interest and some capital. Over a period of time, you may even repay the loan in full if you wanted to.

Can I move home?

Yes - all plans have the feature to be able to move to another property providing that there is enough equity and it is of a suitable construction. You cannot move to a mobile home for example. 

Will there be something left for my children?

For most people, you can leave something behind for your children or grandchildren to inherit. If this is something that is important to you we can guarantee that there is money left. This is called an inheritance guarantee and some lenders build this into their plans.

Do I have to take all the money now?

No - many people don’t want to borrow a large amount of money when they only need a small amount now and the ability to draw down more when they need it. You only pay interest on what you use, this helps to reduce the interest and make it cheaper over a long period

What happens if one partner is much younger than the other?

No problem - the Equity Release mortgage can be taken out in one person's name with the other partner still able to live there.

Can I still arrange this if one or more of my children still live at home?

Yes - this is easily arranged, it just needs a simple form to be signed by anyone over 17.

What happens, if my house decreases in value after I have taken the mortgage out?

There is a clause in all Equity Release plans called a ‘no negative equity plan’. This means that any shortfall after the mortgage and interest is paid off is written off as a tax loss by the lender.

Can I own more than property, say a house and a holiday home?

Yes - these plans are ideal for such a venture. You get to own a holiday home without increasing your monthly outgoings.

Why use equity release instead of cashing in my pension pot?

Most pension pots are not big enough to pay off existing mortgages or to provide all the funds needed to meet a client’s ambitions. Pension pots are there to provide an income, spending the capital reduces this income. But pension pots are taxable, funds from equity release are tax-free.

Will it affect my Inheritance liability?

Yes - but in a positive way. At death debts are paid off first, an Equity Release mortgage reduces the size of the estate and therefore could take an estate below the tax threshold.  

Do I have to borrow against my home?

No - you can borrow against any property that you own, ‘buy to let’ property and holiday cottages, you can also borrow against more than one property.

Additional Information

  • 82% of people want to grow old in the house they live in
  • Money from Equity release is tax-free
  • Your house remains yours until you decide to sell or move out.
  • You can have money now and leave an inheritance
  • 75% of people will consider using money from property instead of pensions to pay for care
  • Equity release can reduce inheritance tax meaning that you can pass more to your family
  • Property wealth for the over 55’s is more than £365 billion pounds

Disclaimers
 

By submitting this form and based on your requirements you agree to be contacted by an FCA authorised Equity Release advisor.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

The details of financial services and products published on this site are for information purposes only and do not constitute financial advice.

By submitting the enquiry form you agree that the information provided is true and accurate and that Equity Release may send the details of this enquiry to an appropriate broker for the purposes of furthering your enquiry and that the broker may contact you for further information as required. We will not send, sell, loan or lease your data to any other third party except those needed to provide the service you have requested.

Equity-release.info Ltd

Registered in England and Wales

Registered no. 6514696

Registered office: 52 Cypress Avenue, Ashford, Kent, TN23 3JP