Equity release: Frequently Asked Questions

Here are some of the most common questions that we get asked regarding equity release. If your question is not here, please call us, and we would be delighted to tell you more.

Are Lifetime Mortgages safe?

Lifetime mortgages and other equity release products are regulated by the Financial Conduct Authority (FCA). Our advisers are fully qualified and will give you clear evidence and advice tailored to your needs.

Yes, you can access equity release if you still have time left on your residential mortgage, but you will need to raise enough money to pay off your existing mortgage with your current provider.

To be eligible for equity release, you need to be a UK homeowner aged over 55.

All equity release applications are subject to the lending criteria of different product providers. We are always happy to answer any questions you may have.

 Yes, you can remain in your home for as long as you are alive or until you move into long-term residential care. You will need to abide by the terms and conditions of your plan.

No. All equity release products, that we recommend a ‘no negative equity guarantee’. This means that when the debt is repaid, which is when the last remaining borrower dies or goes into long term care, the amount to be repaid will never be more than the value of your home.

No. Any lump sum or income you see received via equity release is tax-free.

However, any money left on deposits or other forms of investment could become taxable if you gift money from the proceeds of equity release. This could have implications for your estate planning, and our team can discuss this with you.

No. Unlike residential mortgages, equity release schemes are not dependent upon repayment ability. So having a good credit history is not essential. We can research the whole of the equity release market to find the best product for you.

Yes, you can. There are different products, including Lifetime Mortgages, tailored to homeowners with these types of properties, but they are available with more stringent lending criteria.

Yes, with Lifetime Mortgage plans, you have the freedom to move to another home, subject to certain criteria being met.

Yes. Equity release will reduce the amount of inheritance you can leave for your loved ones, some products can have an ‘inheritance protection guarantee’ built into them that enables you to protect a certain percentage of your property as an inheritance for your family.

Yes, there are many alternatives to equity release, such as remortgaging, downsizing, state benefits, and more. We can talk you through the different options.

How you choose to spend the money that you release through equity release is entirely up to you. You can spend it on whatever you wish, from going on holiday to helping your family.

Are you ready to start your equity release journey?

To learn more about equity release and the various available features, please call Jeremy now on 01354 688 018 or 07768 972 861 or email jeremy@trustedequityrelease.co.uk.