Equity release

A lifetime mortgage is a long-term loan secured against your home. You could either release a lump sum to spend now or choose to take a smaller amount now, leaving the rest to spend in full or in part at a later date.

There are many equity release plans on the market, so it’s vitally important to seek independent, expert advice to compare the whole market to find the right plan for your circumstances.

There are two main types of equity release plan:

With a lifetime mortgage, you take out a loan, secured on your property, and receive that amount as a tax-free lump sum. You do not usually make monthly repayments. Instead, the interest “rolls up”, and the loan plus interest is repaid after your death, when the property is sold.

With a reversion plan, you sell all or part of your home in return for a tax-free lump sum and a guaranteed lifetime lease, with no monthly repayments to meet. After your death the house is sold, so the lender gets back its percentage share.

• Do more of the things that matter in your retirement by releasing money from your home.
• You can continue to live in your home until you die or go into long-term care.
• Minimum age and property values apply, and there are also restrictions on the type of property that are considered for lending purposes.
  If you have an existing mortgage on your home or any secured loans, you’d have to use the money you release to pay these off first, but then you’d be free to spend what’s left however you want.
• A lifetime mortgage is a lifetime commitment. It’s important to understand the costs and risks involved, including how taking a plan will reduce the inheritance you leave and how it may affect your tax position and entitlement to means tested benefits.
• Although the amount of inheritance you can leave will always be reduced, you can choose an inheritance guarantee on a lifetime mortgage to ensure you can leave something for your loved ones. However, this will reduce the amount of money you can borrow.
• It’s a good idea to involve your family in the decision process.

All Equity Release providers recommended by Insight Mortgages & Financial Sservices abide by the SHIP code of conduct. This includes a ‘no negative equity guarantee’. Full details of the SHIP guarantee can be found at www.ship-ltd.org

Equity Release is on a referral basis only.

This is a Lifetime mortgage. To understand the features and risks, ask for a personalised illustration.