Would you like to know more about Equity Release and how it might work for you? Do you want to find out about the various types of equity release plans that are available and suitable for you? Lighthouse can offer a dedicated equity release specialist, to provide homeowners over the age of 55 with expert advice on releasing equity from their home. Why not speak to us to see instantly how much cash you could unlock from your home?
Release cash from your home to enjoy now
Equity Release is available to the over 55-age group and is a way of releasing cash from the value of your home without the need to sell it.
There are many reasons why people release equity from their home; here are some of the more common reasons:
- To pay for home improvements or adapting your home to accommodate your needs
- To supplement retirement income and make life more comfortable
- To clear debts or a mortgage
- To buy a holiday home
- To help out children or grandchildren
- To have a holiday of a lifetime or buy a new car
There are two main types of Equity Release, Lifetime Mortgage and Home Reversion
A type of mortgage that allows you to borrow money against the value of your home like a traditional mortgage, but you do not make any monthly repayments. The amount you owe “rolls up” with interest and is repayable when you die or go into long-term care. Some Lifetime Mortgage companies do allow you to make interest payments or partial repayments if you wish to.
A Home Reversion Plan will provide you with a tax free cash lump sum (or regular payments) and a lifetime lease, guaranteeing you the right to stay in your property rent-free for the rest of your life.
At Lighthouse, we are Independent Equity Release advisers that will give you all of the support, help and advice that you need to make the right decision to identify the best deals that are available to you from across the market.
Taking equity from your home is a big decision and one that should not be entered into lightly. You should always consider the many alternatives to Equity Release such as:
- Selling your home and moving down to a cheaper property
- Claiming state benefits or any grants that may be available
- Using your existing savings or investments
- Getting debt advice
Lighthouse are proud members of the Equity Release Council as its first financial services network organisation member.
In reaching a record £3.06bn for 2017, annual equity release lending activity across all customer groups increased by £909m compared with 2016 (£2.15bn). This growth alone was more than the size of the entire market in 2010 (£804m) and 2011 (£789m), and almost on a par with total activity in 2012 (£926m).
Paul Harris, the Managing Director of Lighthouse Mortgage and Protection Solutions said, “Becoming a member of The Council was a natural progression for us with the Group having arranged £990 million of mortgage funds for 5,150 customers in 2017 and Lighthouse advisers adhere to the principles laid down by the equity release council and are totally committed to delivering excellence in relation to later life lending and equity release advice and help”.
The members of the Equity Release Council uphold the following principles:
- Ensure that their actions promote public confidence in equity release as a potential retirement solution
- Act at all times in utmost good faith
- Communicate high expectations for equity release outcomes in all of their dealings
- Ensure conflicts of interest are managed fairly and reduced to the lowest practical level
- Exercise due skill, care and diligence in all that they do and uphold the standards set out by their professional bodies at all times
- Always act with the best interests of their clients being paramount, treating customers fairly in all their actions
Important Information: Mortgages & Equity Release, it is no longer compulsory to include risk warnings, however good practice would be to include them where there is room. Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it. Think carefully before securing other debts against your home.
Equity release may involve a lifetime mortgage or a home reversion plan. To understand the features and risks, ask for a personalised illustration. Equity release may not be right for everyone. It may affect your entitlement to state benefits and will reduce the value of your estate. Check that this mortgage will meet your needs if you want to move or sell your home or want your family to inherit it. If you are in any doubt, seek specialist advice.