The basics
What is the minimum age?
The minimum age for a lifetime mortgage is 55. Generally, the older you are, the more you can release, because the plan is expected to run for a shorter time.
Will the house still be mine?
Yes. Ownership stays with you, and you carry on living in the property as before.
Will I have to pay something back every month?
With a lifetime mortgage, no. Most plans let the interest build up, with the loan repaid when you die or move into long-term care, and some let you make optional payments, which can reduce the total cost. A retirement interest-only (RIO) mortgage works differently: you pay the interest each month.
Is it possible to owe more than my home is worth?
Not with an Equity Release Council member. Their standards include a no negative equity guarantee, so the amount you or your estate repay can never exceed the value of your home.
Do you charge for your advice?
The first conversation is free. If you decide to go ahead, my fee is £895, which I'll confirm in writing before you commit to anything.
Your home and your family
Will my family inherit less?
Yes. Equity release reduces the value of your estate, so there will be less to leave them. Inheritance protection can set aside a share for them, but it reduces how much you can borrow. You can also make payments towards Capital & Interest or Interest Only. It helps to talk to your family early, and they're welcome to join our conversations.
What happens when I die or go into long-term care?
The loan and interest are repaid, usually by selling the home. Anything left goes to your estate. With a no negative equity guarantee, your estate will never owe more than the home is sold for.
Am I able to move home later?
Equity Release Council standards include the right to move to another suitable property, subject to the lender's criteria. In practice the plan may be able to transfer to your new home, or you can repay it. Check the terms of any plan first.
I still have a mortgage. Can I release equity?
Usually, yes. The money released is used to repay your existing mortgage first, and you receive what's left. You can include it in the calculator.
Costs and repayments
How much interest will I be charged?
Rates differ between lenders and plans, and change over time. Equity Release Council standards require the rate to be fixed or capped for life, so you'll know the most it can be. Your personalised illustration shows the rate and the total cost.
How fast does the loan grow?
If the interest is added to the loan, it can grow quickly, because interest is charged on the interest that has already built up. Paying some or all of the interest, where the plan allows it, slows this down. The calculator gives you an illustration.
What other costs are there besides interest?
There can be arrangement, valuation and legal fees, and a plan may charge you if you repay it early. My own fee is £895, confirmed in writing before you go ahead. Your personalised illustration should set out every cost.
Is it possible to pay the loan off early?
Usually, yes, but some plans charge an early repayment charge, while others allow repayments without one. Ask about early repayment charges and any repayment allowance before you decide.
Do I have to take all the money at once?
No. With drawdown you take an initial amount and keep a reserve to draw on later, and you only pay interest on what you've taken. There's more on the lifetime mortgages page.
Are there rules on how I spend the money?
Most plans let you use it as you wish. Home improvements, clearing a mortgage or debts, helping family and topping up retirement income are common uses. We'll talk through whether it suits what you have in mind.
Could it change the benefits I receive?
It can. Money you release may count towards means-tested benefits, such as Pension Credit. It's important to check before you decide, and I can talk through how it might affect you.
Advice and next steps
Which types of equity release do you advise on?
I advise on lifetime mortgages and retirement interest-only (RIO) mortgages only. If neither is right for you, I'll say so and talk through the alternatives.
Is a solicitor involved?
Yes. Equity Release Council standards require you to take independent legal advice from a solicitor before you go ahead, and we will arrange this on your behalf. It's there to safeguard you.
Will I have to come and see you?
No. I work with clients remotely, so you can talk to me from home. A few steps involve other people, such as the lender's valuation of your property and seeing a solicitor, and I'll explain how each one works.
How many weeks does the process take?
Usually a matter of weeks from application to funds, depending on the lender and the solicitors involved. There's no need to rush, and you can take as long as you need to decide.
Who regulates equity release?
Lifetime and retirement interest-only mortgages are regulated by the Financial Conduct Authority, and Equity Release Council members follow additional standards. Avalon FS Ltd, the firm I advise through, is authorised and regulated by the FCA and is a member of the Council. The details are in the footer of every page.
Can't see your question?
Just ask me. The first conversation is free, with no obligation.