Equity Release

Considering releasing equity from your home? OneFamily Advice can help.

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What is Equity Release?

Equity release can help you turn your property into valuable retirement income by unlocking part of the value of your home and turning it into tax-free cash. This can be used in a number of ways, including providing additional retirement income, paying off debt, gifting to family, or making home improvements. There are two types of equity release – lifetime mortgages and home reversion plans. OneFamily Advice offer lifetime mortgage advice.

How does Equity Release work?

If you're a homeowner and aged 55 or over, you could be able to release equity using a lifetime mortgage - which is a loan taken out against your home. You continue to own your home and you can stay living in it for as long as you like. The loan is then repaid from the sale of your property when you die or enter long-term care.

The maximum amount of equity you can release depends on a number of factors, including your age and various aspects of your property.

To release equity from your home you need to have an equity release product recommended to you by a qualified adviser who has considered your unique circumstances. There are lots of things to consider, including inheritance and how equity release payments could affect your benefit entitlements or tax obligations.

How much does it cost?

The costs associated with equity release vary depending on your circumstances, and it’s important to understand what these are. Typical costs you may be required to pay include legal fees, valuation fees, arrangement fees and adviser fees.

Some advisers charge a percentage of the equity released for their fee. At OneFamily Advice, our advisers charge a fixed fee of £950 upon completion, giving you peace of mind without the need to worry about additional expenses.

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Here's what makes OneFamily Advice different

Fixed fee

We provide advice for a fixed fee of £950, paid on completion, no matter the size of the loan.

Other providers often charge a percentage of the loan, meaning it’s not always obvious how much you’ll end up paying.

Whole-of-market advice

Our advisers search the whole market and assess every available lifetime mortgage.

Our lifetime mortgage advice service can save you a great deal of time and money as we'll research all available providers and only recommend the best value product that is most suited to your needs.

Free initial consultation

With no pressure to commit, our friendly advisers can answer any questions you may have.

They can help you understand how equity release works, whether you're eligible and how a lifetime mortgage could work for you.

Speak to OneFamily Advice today

Our friendly, specialist advisers are here to answer any questions you may have about lifetime mortgages.

In your free, no obligation chat your adviser will check you meet the basic criteria for a lifetime mortgage, as well as ensuring you understand the implications of equity release. They’ll get to know your current circumstances before making their recommendations.

Request a call back

or call 0800 144 8240*

*Lines are open Monday to Friday 9am to 5.30pm and Saturday 10am to 2pm. Calls may be recorded and monitored for training purposes. Calls to freephone numbers are free from UK landlines and personal mobile phones. With business mobiles the cost will depend on your phone provider. If you'd like to know more, please ask your provider.

Receive your free equity release guide

Equity release is a big decision, and there are lots of factors to consider.

Enter your details to get our free eGuide, and find out more about how releasing equity from your home could help you manage your finances in later life.

What are the Pros and Cons of Equity Release?

Pros

A lifetime mortgage allows you to release equity from your home while retaining full ownership
Lifetime mortgages come with a ‘No Negative Equity’ guarantee, ensuring you never owe more than your home is worth
You can stay in your home for life
You don’t have to make any repayments until you die or enter long-term care, but there are options to make payments against the interest and the loan
Unlike a home reversion plan, where you sell a portion of your home up-front, with a lifetime mortgage you retain ownership and can fully benefit from future increases in the value of your property
You can choose to pay off the loan early
Equity release can reduce the value of your estate, which can be useful in reducing your Inheritance Tax liability

Cons

The interest on a lifetime mortgage can ‘roll-up’, which means with a rate of 4.1% compounded annually on a £100,000 lump sum would add interest costs of £55,000 over ten years
Lifetime mortgages typically come with lender fees, solicitor fees and a fee paid to the equity release adviser who recommends the product. Charges associated with equity release can total between £2,000 and £3,000
An adviser will help you understand all the charges associated with any product they recommend. Find out more about the costs of equity release
If you choose to repay all or part of the loan early there may be an Early Repayment Charge
The money you release from your home with a lifetime mortgage can affect your entitlement to means-tested state benefits

Equity release is not for everyone. It's important to speak with an equity release adviser, who will talk through your options based on your circumstances and help you to find the right solution for your needs.

Want a free, informal chat to find out more? Our friendly, specialist advisers are on hand. Either request a call back or call us on 0800 144 8240*.

We're members of the Equity Release Council

All our advisers are members of the Equity Release Council and following strict guidelines, so you will be in safe hands. We will never suggest equity release, unless it’s right for you.

To find out more, please visit their website at www.equityreleasecouncil.com