Frequently Asked Questions about Equity Release
Equity Release is not for everyone,
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- Can you tell me quickly how much I can borrow?
No -The amount that can be borrowed via Equity Release will be affected by the house value, your age and your health.
- What about Lifetime Mortgages Interest Rates?
For lifetime mortgages, interest rates must be fixed or, if they are variable, there must be a “cap” (upper limit) which is fixed for the life of the loan. Fees are compounded annually and can mount up but be aware house values tend to increase which can offset some or even all of the interest. Death taxes will be lower because your estate will be less as you have an outstanding loan and will reduce the amount of the inheritance to your beneficiaries.
- Can I lose my home?
You will not lose your home and can remain there for as long as you wish providing it remains your main residence
- Can I owe more than the value of my home
There is a "no negative equity guarantee" so no matter what happens your estate will never owe more than the value of your home.
- Can I protect the equity in my home?
Yes - You can protect a chosen percentage of the equity should you wish.
- What if I decide to move or downsize?
You can downsize / move in the future usually without penalty. You can move to another suitable property subject to the new property being acceptable to your product provide
- Are there any legal fees to pay and do I have to pay them up-front?
Fees, such as legal costs, valuation fee and lender fee’s do not have to be paid upfront and can be deducted from the Equity Release advance.
You are advised to seek a legal advice with an independent solicitor