FAQs

Equity release is defined as a complex financial product by the FCA and as such is regulated by them. You must have advice prior to making an application and legal advice prior to completion. Your Equity Release advisors and the lenders they recommend are all proud to be members of the equity release council and adhere to the strict membership rules as set out by them.

Will I lose all of my house through the interest charged?

Interest rates are usually fixed for life or are capped. Lifetime mortgage interest rates are currently at record lows with interest rates on many available plans being lower than some current standard mortgage interest rates. Loan sizes available are calculated based on life expectancy and you can use these calculators to see the impact against your estate on your borrowing. All lenders offer plans with the option of paying some or all of the interest as you go along and there is the option to ring-fence a part of your property in order to guarantee it for inheritance.

Equity release is a way of releasing some of the value of your home which you might not otherwise be able to access whilst you are living in it. The release may be in the form of a loan that is secured against your property or by selling a part/share/all of your home in exchange for money. The equity in your property is the value of it minus any debt such as a mortgage that is secured against it. E.G. Your property is worth £250,000 and you have an outstanding mortgage of £50,000, therefore the equity in your property is £200,000 (£250,000-£50,000=£200,000 of equity)

All equity release plans are backed with a no negative equity guarantee. This means that you will never pay back more than the value of your property. You can remain in your home for the rest of your lives. The borrowing plus any interest that has been charged only has to be repaid from the sale of the property once the last person either passes away or moves into care. Your estate repays the debt, not your children.

Yes. As all recommendations made by Your Equity Release fall under the equity release council membership principles, you will always have the option to move in the future should you wish to, provided your new property meets the lenders requirements.