Any financial decision you make during your lifetime is never usually more important than taking out a mortgage to buy your dream home. The right advice at this juncture in life helps ensure you’re financial able to cope with the ups and downs with whatever the UK economy throws at you in the years ahead.
Likewise, as you approach, or have already reached retirement age, the same process is being taken by many thousands of over 55’s who are looking ahead to the next stage of their fiscal journey by taking out equity release. It is therefore again important the best advice is obtained, because these remaining years will have a different outcome on your life’s assets – affecting your potential inheritance.
For those homeowners age 55+ who are considering equity release – of which a lifetime mortgage is the most popular version – they need to gain a full understanding of what equity release is, how it works and what the process is in being able to release equity from the main residence – but ultimately what effects will equity release have on my estate and beneficiaries?
Here at Equity Release Supermarket, we treat customers as individuals as there is no one size fits all approach. For instance, depending on levels of tech awareness, some will be happy researching online, and here on our website we provide everything to help that self-education process.
This can be as basic as gaining an understanding from the text content written within our informative pages explaining ‘What is equity release’, through to an understanding of the different plans and how they work. We supplement this with the ability to download free guides and explainer videos – providing transparency through a rich and diverse marketplace.
For those with digital capabilities is where we excel from the rest of the equity release market by offering a host of comprehensive digital tools provided nowhere else in the later life industry: -
- 20+ equity release calculators - to find out the maximum amount you can borrow
- Equity release comparison tables - to see current interest rates & deals
- Find an adviser postcode tool - to find your local Equity Release Supermarket adviser
- smartER – the first and only equity release research tool for homeowners
After using the tools and gaining a greater understanding of equity release or you need further information our FCA qualified advisers can offer a free initial no obligation discussion about and answer any of your equity release questions
So, what does the equity release process look like and how long does it take?
A popular question, after all once you know you’d like to proceed with releasing equity, you want to know how soon the funds can be made readily available. As equity release is an advised process, your adviser would firstly need to understand your requirements, both immediately and any in the future aswell.
The timescale on these early stages is always driven by the customer, as we never place any pressure to make quick decisions – no matter the urgency of the situation. We’d always advocate that family members are also involved in these discussions, so they are fully aware and can contribute their views on what the parents are doing. Ultimately it will affect them over the longer term in the event of any potential inheritance they may receive.
Once both parties are comfortable with the advice provided and the lender and product recommended, the application can then be made to a lender. The timeframe from application to completion and receipt of the funds we’d normally expect to be within four to six weeks. However, it does depend on the complexity of the case and any issues that could arise with the property valuation and/or the legal process.
Which lender should I select?
The role of your equity release adviser is to find the most suitable plan across the whole of the equity release market that is the most competitive for your requirements now & in the future. If we feel equity release is not suitable for you, we will tell you accordingly – after all there are alternatives to taking out equity release, and your adviser will discuss these with you.
Obtaining independent whole of market equity release advice is important to feel reassured you have the best deal across the market – something we here at Equity Release Supermarket are passionate about. Additionally, being members of the Equity Release Council ensures the advice process we provide meets the industry standards.
We deal with lenders that vary from household names such as Aviva, Legal & General, LV=, Standard Life and Scottish Widows. There are also lesser-known names in the equity release market too, albeit they are still specialists in this later life lending space – most notably Pure Retirement and More2Life.
However, recommending the best equity release deal for you is our responsibility, and we’ll research the hundreds of plans available, ascertaining suitability and benefits of these plans to shortlist the ones that offer the best rate, features, and fees.
No two client scenarios are the same.
While this may sound like a throwaway line, it really is true. Of course, there are certain scenarios which are similar and are often used by people releasing funds through equity release from their homes. The most popular reasons for homeowners releasing equity can be:
- Gifting money to family
- Releasing funds in the event of a divorce
- Setting up an emergency savings fund for future needs
- Paying for your dream holiday in retirement
- Carrying out home improvements
- Assist with a new house purchase
- Buying that dream call or motorhome for your retirement
- Or carrying out combinations of the above
With the increasing cost of property ownership and the ever-growing challenge for younger members of the family, or even first-time buyers later in life getting on the property ladder, releasing equity from your home to assist them with their deposit or with the purchase itself is a very common situation.
We often witness parents gifting an early inheritance to their children – money they planned to leave them anyway, but rather than making them wait, can help them now when they need it most. Also, a notable factor in any living inheritance is parents can witness first-hand the difference an early gift of equity can make enjoy in being able to spend more time with their children or even grandchildren in a new home.
It's OK if you want to enjoy your retirement!
You have worked hard all your life to look after and pay for your home which can ultimately leave people in the position of being asset rich [the value of your house], but cash poor. This can be frustrating but if you find yourself in this position, this is where equity release is a potential solution for many homeowners over the age of 55.
Whatever your situation, if you would like to explore your options or just have a chat about equity release, our advisers here at Equity Release Supermarket would love to hear from you.
Call our freephone number on 0800 802 1051 to discuss or ask any questions about equity release.