Here are some frequently asked questions we encounter about equity release.
Speak to one of our specialist Equity Release Team on 01225 755656. Alternatively, complete the Contact Form at the foot of this page.
How long does equity release take?
Before proceeding with equity release, you will need to obtain legal and financial advice, and the time this takes can vary. Once you are ready to proceed, the process typically takes between 8 and 12 weeks to complete.
Do I still own my own home?
It’s a common misconception that with equity release, you will no longer own your home. In fact, you remain the legal owner until you pass away or move into long-term care. However, the lender will require you to insure the property and keep it well-maintained.
Can I borrow more later?
It might be possible to borrow more later if your home increases in value or if you did not borrow the full amount to begin with. If you borrow more, the terms and conditions will be those applicable at the time of the further advance, which may be different to those that applied previously.
Can I use equity release to buy another property?
In most cases, yes, but ultimately it depends on the lending criteria. If your proposed new home is worth less than your current one, the lender may require you to repay some of the loan and interest. Some lenders offer downsizing protection which allows you to repay your lifetime mortgage with no early repayment charge. You are then free to buy your new home.
Does equity release affect my benefits?
The capital released through equity release can affect your entitlement to means-tested benefits such as pension credit and council tax reduction (formerly council tax benefit). It can also affect your tax position. This is one of the reasons why taking financial advice at the outset is crucial.
Can I change my mind?
You should never feel rushed or pressured to proceed with equity release. It’s a huge step with a lot to consider, and your aims may be achievable in a different way. If you do feel pressured to proceed – walk away.
Always consider including family members in meetings so they know what is happening and have an opportunity to ask questions.
You can pull out at any time before you sign the contract.