5 Frequently asked questions

Here are 5 frequently asked questions about Equity Release?

Is Equity Release Safe?

With SHIP approved schemes there are important legal guarantees in place. Click here for further information. (link to the SHIP website)

How much can I release?

The amount depends on age and varies between different providers.

For example a 60 year old may release up to 25% of the value of their property from a Lifetime Mortgage.

That amount would be up to 30% at age 65, 35% at age 70 and 40% at age 75.

How long does it take?

From the time of applying until you receive your funds usually takes approximately 8 – 12 weeks.

Will it affect my State Benefits?

Equity release can affect means tested benefits such as Pension Credit, Savings Credit and Council Tax Credit.

This doesn’t mean you shouldn’t take an Equity Release plan but it means it is important to understand the impact it may have.

We can help you in this respect and it is often possible to take sensible measures to avoid losing any of your benefits.

Your State Pension is not affected.

Can I repay an equity release plan, for example if I want to sell up and downsize?

Yes you can. This is an important matter to discuss when seeking advice because it has different implications from plan to plan. Most plans have some form of early repayment charge but there is one provider who charges none.