Your ques­tions on eq­uity re­lease an­swered

Scottish Daily Mail - - ADVERTISEM­ENT FEATURE -

How safe is eq­uity re­lease?

Eq­uity re­lease is fully reg­u­lated by the Fi­nan­cial Con­duct Au­thor­ity, whose pri­mary role is to pro­tect con­sumers. Be­fore you can re­lease eq­uity from your home, you’ll need to speak to an ex­pert eq­uity re­lease ad­viser to make sure it’s the right thing for you.

Will I still own my home?

Yes. A life­time mort­gage, the most pop­u­lar type of eq­uity re­lease, is a loan se­cured against your home, but un­like a tra­di­tional mort­gage, there are typ­i­cally no monthly re­pay­ments as the loan plus roll-up in­ter­est is re­paid when the plan ends.

Will I ever owe more than my home is worth?

Never. All of Key Eq­uity Re­lease’s plans are ap­proved by the Eq­uity Re­lease Coun­cil and come with a no neg­a­tive eq­uity guar­an­tee, mean­ing that you’ll never owe more than your home is worth.

Can I move house?

You can. It’s pos­si­ble to trans­fer your eq­uity re­lease plan to a new home, as long as it fits your provider’s cri­te­ria.

Do I need to get a solic­i­tor?

Yes. An in­de­pen­dent solic­i­tor will need to be ap­pointed to han­dle the le­gal side of the process. Key Eq­uity Re­lease want to make sure you are com­fort­able, so can help you with this de­ci­sion if you pre­fer. What can we use the money for? Your tax-free cash can be spent on a wide va­ri­ety of things, and some of the most pop­u­lar in­clude travel, home im­prove­ments, re­pay­ing ex­ist­ing debts or gift­ing to loved ones. Re­mem­ber, you should al­ways think care­fully be­fore se­cur­ing a loan against your home.

Will I still be able to leave a in­her­i­tance for my loved ones?

Ab­so­lutely. Some of their plans

in­clude an op­tion to ring-fence a set per­cent­age of your home’s fu­ture value, so it’s pro­tected and can be passed on to your loved ones when your plan ends.

Can I take eq­uity re­lease if I have an ex­ist­ing mort­gage?

Lots of peo­ple use eq­uity re­lease to re­pay an out­stand­ing mort­gage bal­ance. You don’t have to be mort­gage-free when you ap­ply for eq­uity re­lease, but it is a con­di­tion of the loan that you re­pay out­stand­ing debts se­cured against your home be­fore your loan completes. The rest of your money will be yours to en­joy.

What hap­pens when I die?

Of­ten your home will be sold when you, or both par­ties in a joint plan, have passed away. The money from the sale is used to re­pay your eq­uity re­lease plan and any money left will go to your es­tate.

Who de­cides what my home is worth?

Key Eq­uity Re­lease only ap­point in­de­pen­dent RICS-reg­is­tered sur­vey­ors to as­sess the value of your home, so you can be con­fi­dent you’re get­ting an ac­cu­rate val­u­a­tion.

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