We are pleased to announce that sbl financial can now provide Equity Release advice.  Gabor Hofmann is our inhouse equity release adviser who is happy to help our clients that would like to know if equity release is right for them.  He can provide face to face appointments, help with solicitors & legal work, along with the processing of your equity release application.

What is equity release?

Equity release lets homeowners aged 55 and over release tax-free cash from the value of their home. The amount you can release is based on your age and how much your home is worth. Depending on the equity release product you choose, you can claim your money as one big lump sum or as a series of smaller lump sums.
This tax-free lump sum can be used for home improvements, holiday of a lifetime, purchase the car of your dreams, pay off a mortgage or other loans, supplement your income or gifting the money to friends and family.

Some lenders can also give you the option to protect an inheritance for your family from the value of your home. The amount you protect won’t be used when calculating how much you can borrow.
Some equity release providers also offer a no negative equity guarantee. This means that the money you’ll eventually need to pay back will never be more than the total value of your home. You won’t need to pay the money you have released back until the last surviving borrower passes away or moves out of the home into long-term care. The loan is usually paid off from the sale of your home.

You might have heard that it’s horrible and best avoided.

This is not true. In recent years equity release products have significantly changed and now they are a lot more flexible.

Is equity release unsafe and un-regulated?

Lifetime mortgages are safe and are regulated by the Financial Conduct Authority. The Equity Release Council also provide consumer protection specifically for equity release.

I have heard that I will owe more than the value of my home?

All lenders must now feature a “No Negative Equity Guarantee”. This means that you will never owe more than your home is worth once sold, even if this is less than the amount owed, provided you meet the terms of conditions of the product.

Is it possible to reduce the outstanding debt?

Most products offer you the option to make partial repayments with no early repayment charges. The amount that can be repaid is usually up to a fixed amount each year.

Will I lose ownership and control of the property?

With lifetime mortgages you will be the owner of your home for as long as you want to live there. It’s the same way as you would for a standard mortgage product.

Will I be able to move home or will I be stuck there for all of my life?

With most lifetime mortgages you will be able to move home and transfer your lifetime mortgage provided you meet the lenders terms and conditions. A partial repayment may be required depending on the value of the new property. Some providers however offer a downsize protection even when the property doesn’t meet the criteria.

Equity release plans are not right for everyone and it is important that you fully consider your options and receive impartial financial advice before making a decision. It is also important that, if you do decide to use an equity release product, you need to be sure it is one that meets your needs. If you would like to end your lifetime mortgage early, then you may have to pay a substantial early repayment charge. A professional adviser can help you to choose the plan that is right for you. To understand the features and risks, ask for a personalised illustration.