Equity release – at a glance
- You will receive a cash lump sum or series of payments, dependent upon the type of scheme you choose.
- There are typically no monthly repayments to make.
- You have the complete freedom to spend the money how you wish.
- You can stay in your home for life or for as long as you choose.
- There are a wide range of equity release schemes available, which can be tailored to your individual circumstances.
- An equity release scheme will reduced the value of your estate.
- Your entitlement to state benefits may be affected. Consulting an equity release adviser will help you learn more about this and whether it will affect you.
Who qualifies for an equity release scheme?
To qualify for an equity release scheme you must:
- Be aged 55-95 (both partners if couple)
- Own a home worth at least £50,000
- Be living within the UK mainland or in Northern Ireland.
What are the different equity release schemes?
There are currently three main types of equity release schemes on the UK market. These are called:
- Lifetime Mortgages,
- Drawdown Lifetime Mortgages
- Home Reversion Plans
There are also interest-only lifetime mortgages and enhanced lifetime mortgages.
You can read more about all of these equity release schemes here, or alternatively via our free equity release guide, which we will pop in the post to you!
Are you eligible?
Find out whether you qualify for equity release and how much cash you could potentially release from your home through our free equity release calculator today.
Ensuring your safety throughout
The Financial Services Authority (FSA) ensure that customers who take out an equity release plan are protected throughout the whole process. Key Retirement Solutions is regulated by the FSA and adhere to their guidelines and regulations. Our extensive training programme for all our advisers is the only course accredited by the Institute of Financial Services’ School of Finance.
If you are looking into equity release we recommend that you consider SHIP (Safe Home Income Plans) approved equity release schemes. SHIP was established in 1991, providing homeowners with an extra safeguard when taking out an equity release scheme.
A SHIP-approved plan guarantees that you:
- Will never fall into negative equity. This means that you will never owe more than the value of your home.
- Have the right to remain in your home for life, or for as long as you choose.
- Have the freedom to move to another property without financial penalty (subject to provider criteria).
If you are considering equity release as your next financial move then you should read through Is It Right For You? carefully. This guide will give you a few points to discuss before considering an equity release plan.
