Equity Release
- Access to competitive rates and some you can't get direct
- Specialist Mortgage Advisers
- Free initial consultation
What's On This Page?
Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.
The Financial Conduct Authority does not regulate most Buy to Let Mortgages.
Get In Touch
For those over 55, equity release can provide significant benefits. Whether you’re looking to supplement your retirement income, fund home improvements, or support family members, equity release offers a practical solution explicitly tailored to your needs. With modern equity release products, you can enjoy greater flexibility and a range of options that cater to your specific financial goals.
Today’s equity release market has evolved dramatically, providing a variety of plans designed to fit diverse needs and preferences. From lump sum payments to flexible drawdown options, these products offer an array of possibilities to suit your lifestyle. With the right equity release plan, you can enjoy the financial freedom you need while remaining in the comfort of your own home.
Understanding Equity Release
Equity release is a financial product that enables homeowners, typically aged 55 and over, to access the cash value of their property while continuing to live in it. Essentially, it allows you to unlock the value tied up in your home without the need to sell or relocate.
There are two main types of equity release products:
Lifetime Mortgages: This option allows you to take out a loan secured against your home. You retain ownership of your property, and the loan, along with the accrued interest, is repaid when you sell the home or pass away.
Home Reversion Plans: With this plan, you sell a portion or the entirety of your home to a provider in exchange for a lump sum or regular payments. You continue to live in the property as a tenant, and the home is sold when you move out or pass away, with the proceeds used to repay the provider.
Equity release provides a way to access a significant sum of money or a regular income stream, utilising the equity you’ve built up in your property over the years. This financial flexibility can help fund retirement plans, make home improvements, or support loved ones, all while allowing you to remain comfortably in your own home.
Types of Equity Release Products
Equity release offers two primary types of products, each designed to cater to different needs and preferences. Here’s a closer look at the two main options:
Lifetime Mortgages
Lifetime mortgages are the most common form of equity release. Here’s how they work:
How They Work: With a lifetime mortgage, you take out a loan secured against your property. You continue to own and live in your home, and the loan, along with the interest accrued, is repaid when the property is sold, usually after you move into long-term care or pass away.
Key Features:
- Ability to Stay in Your Home: You remain the owner of your property and can continue living in it for as long as you wish.
- Repayment Options: Some lifetime mortgages offer flexible repayment options. You may choose to make monthly interest payments to prevent the loan balance from increasing, or you can opt for a roll-up plan where the interest is added to the loan balance and repaid when the home is sold.
- Interest Rates: Lifetime mortgages generally come with fixed interest rates, which means the rate remains the same throughout the life of the loan, providing stability and predictability in your financial planning.
Home Reversion Plans
Home reversion plans offer a different approach to accessing your home’s equity:
How They Work: In a home reversion plan, you sell a percentage or the entirety of your home to a reversion provider in exchange for a lump sum or regular payments. You continue to live in your home as a tenant for the rest of your life, and the property is sold when you move out or pass away.
Key Features:
- Selling a Portion of Your Home: Unlike lifetime mortgages, home reversion plans involve selling part or all of your property to access cash. You do not need to make any monthly repayments, but you will not benefit from the future increase in property value for the portion you’ve sold.
- Tenure: You have the right to live in the home for the rest of your life, but the reversion provider will take ownership of the property once you no longer live there.
While both options allow you to access the value of your home without moving, they differ in how they are structured and the implications for property ownership. Understanding these differences can help you choose the equity release product that best fits your financial needs and goals.
Equity Release/Lifetime Mortgages: This is a lifetime mortgage. To understand the features and risks, please ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice.
Why Choose Fort Advice Bureau LTD?
- Our experienced Management Team has over 50 year's worth of combined knowledge in the mortgage industry.
- We can quickly assess your needs and compare the most suitable products to find you the most suitable deal.
- With an honest, transparent and consultative approach, we are 100 per cent focused on delivering a first-class service every step of the way.
- We build strong, long-lasting relationships with lenders and are not reliant on a computer-generated response.
Fort Advice Bureau is a directly authorised, independent, Mortgage and Protection brokerage which is simply the best way to operate. We are looking for experienced mortgage and protection advisers across the UK, to become part of our business. You will already be self-employed or looking to become such, no monthly fees, and a competitive flexible package. We are an easy-going and friendly firm which you can confirm by asking any one of our advisers.
Telephone: 01245 203495
Email: FAB@fort-ab.co.uk