Mortgage, protection and equity release advice across East Sussex
Equity release and lifetime mortgage advice
Equity release lets homeowners aged 55 and over unlock some of the value in their home without moving. It can make a real difference, and it's a big decision, so I'll take the time to explain it properly and look at every alternative with you.
An equity release product will reduce the value of your estate, will not be suitable for everyone and may affect your entitlement to state benefits. To understand the features and risks please ask for a personalised illustration.
This is a lifetime mortgage. To understand the features and risks, please ask for a personalised illustration.
How a lifetime mortgage works
A lifetime mortgage is a loan secured on your home. You keep ownership, and how much you can borrow depends on your age and the value of your property rather than your income.
You can let the interest roll up, or make payments towards it to limit how much the balance grows. The loan and the interest are usually repaid from the sale of your home when you pass away or move into long-term care.
There are two types of equity release: lifetime mortgages and home reversion plans. I advise on lifetime mortgages only. If a home reversion plan might suit you better, I'll tell you, so you can get advice elsewhere.
Lump sum
You receive one payment at the start, and interest is charged on the whole amount from day one.
Drawdown
You take an initial amount and keep a cash reserve to draw on when you need it. Interest is only charged on what you've actually taken.
Protected by Equity Release Council standards
I'm a member of the Equity Release Council. Lifetime mortgages from the Council's member lenders must meet its product standards, which include:
Product features vary between lenders. Your personalised illustration will set out exactly how your plan works.
- Fixed or capped interestThe interest rate is fixed, or if it's variable, capped for the life of the loan.
- The right to remainYou can live in your home for life, or until you move into long-term care, provided it stays your main home and you keep to the terms.
- The right to moveYou can move to another suitable property, subject to the lender's criteria.
- No negative equity guaranteeWhen your home is sold, you or your estate will not owe more than its sale value, provided the terms are met.
- Penalty-free paymentsYou can make some repayments without penalty, subject to the lender's criteria.
- Independent legal adviceA solicitor acts for you and explains the plan before you sign anything.
Why people consider it
- Clearing an interest-only mortgage at the end of its term
- Home and garden improvements, or adapting your home
- Helping children or grandchildren
- Topping up retirement income
- Clearing other debts
What to weigh up carefully
- Interest compounds, so the amount owed can grow quickly if it's left to roll up.
- It will reduce the value of your estate and what you can leave to your family.
- It may affect your entitlement to means-tested state benefits.
- Early repayment charges can apply if you repay the plan early.
- Other options may suit you better, such as downsizing, using savings, a retirement interest-only mortgage or help from family. We'll look at these together.
Your family is welcome at every meeting
Equity release affects the people you love, so I'd encourage you to involve them. Family members often have questions of their own, and I'm happy to answer them.
There's never any pressure to decide on the day. We'll meet, talk it through, and you'll have time to think and to speak to the people who matter before anything goes ahead.
Equity release questions
How old do I need to be for equity release?
Lifetime mortgages are usually available from age 55. Generally, the older you are, the more you may be able to release.
Will I still own my home?
Yes. With a lifetime mortgage the lender places a charge on your home, but you remain the owner and continue to benefit from any rise in its value.
Will I leave a debt to my children?
Plans that meet Equity Release Council standards include a no negative equity guarantee. When your home is sold, the amount owed will not be more than its sale value, provided the terms of the plan are met. Equity release will reduce what you can leave to your family, so it's important to talk it through with them.
Can equity release clear my interest-only mortgage?
Yes, and it's one of the most common reasons people come to me. Any existing mortgage on the property has to be repaid from the money released.
Can I use it for home improvements?
Yes. People use equity release for home and garden improvements, adaptations, helping family, or making retirement more comfortable.
Should my family be involved?
They don't have to be, but I'd encourage it. You're welcome to have family with you at every meeting, and there's never any pressure to make a decision on the day.
Talk it through, with no pressure
Book a free first conversation, on your own or with family. We'll look at whether equity release is right for you, and what the alternatives are.