Equity release could help secure your future

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 rising costs of living. With a range of flexible options, there are equity release plans available for a variety of different personal circumstances.

For those people 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. Once any outstanding mortgage has been repaid, the money that you release is yours to enjoy spending.

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, meaning a wider range of plans to choose from.

Step 3

Organise a quotation to discuss your borrowing needs. Through the Mail Finance Equity Release Service you will be provided with a free, no-obligation quotation.

Only if you then choose to proceed and your case completes would a 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 money that you release, plus the interest that you accrue, is repaid when you die or go into long-term care and your property is sold. 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 nonegative-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 your 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. Equity release may involve a home reversion plan or lifetime mortgage which is secured against your property.

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, via video call 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.