Not sure whether equity release is right for you?

If you’re thinking about equity release but don’t know where to turn for advice, read our step-by-step guide.

Every year thousands of homeowners aged 55 and over release tax-free money from their homes to repay their mortgage, financially help a family member or just to give them peace of mind during uncertain times. With a growing range of flexible options and historically low average rates, there are equity release plans available for a range of different personal circumstances.

For those who took out an interest-only mortgage years ago, equity release could provide the perfect vehicle for repaying the original loan.

If you’re thinking about equity release but don’t know where to turn for advice, read our step-by-step guide:

Step 1

Have an understanding of what you would like the money for. The lowest amount that you can release is £10,000 and the maximum amount depends on the age of the youngest homeowner, and the value of your property. The maximum that anyone can release is 58 per cent of their property’s value. Once any outstanding mortgage has been repaid, the money that you release is yours to spend.

Step 2

Contact a specialist broker who is qualified to offer equity release advice. Some advisers are tied to particular products, but through the Mail Finance Equity Release Service you will have access to advice from the whole of the market.

Step 3

Organise a quotation to discuss your borrowing needs. Through the Mail Finance Equity Release Service you will be provided with a quote free of charge and without any obligation for you to proceed. Only if you then choose to proceed and your case completes would a typical fee of £1,995 be payable.

Step 4

Your adviser will help you understand all of your options. They will also ask you to consider alternative methods to access the money that you’re looking for, such as downsizing to a smaller property.

How does it work?

The rise in popularity of equity release means that there are now more plans on the market than ever before, rising from 88, five years ago to almost 700.

There are now plans that allow you to pay off some of the interest each month, and you can choose the percentage that suits you. By paying a percentage of the interest, you can reduce the amount of debt that is rolled up.

There are also plans that allow you to safeguard a percentage of your property’s value so that you can pass this on to your loved ones.

You may also be concerned about passing on debt to your family, but equity release plans come with a no-negative equity guarantee, which means that you can never pass on the debt to your estate – providing the property is sold for a reasonable amount.

The importance of expert, independent advice

As part of the free equity release quotation, your adviser will provide you with a personalised illustration which

outlines the features and risks involved. It’s the adviser’s job to ensure that you’re fully aware of all aspects of equity release, including the effect it will have on the amount of inheritance you can leave and if your entitlement to means-tested benefits could be affected, either now or in the future.

Why choose Mail Finance?

Through our service you will receive:

Impartial and independent advice

A free quotation, without any obligation to proceed

Your own dedicated adviser to help you along the way

Appointments available over the phone or in the comfort of your own home, whichever you prefer

Exclusive plans and features from leading lenders

Whole-of-market comparison to find a suitable plan for your needs