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Equity Release

We offer bespoke independent advice on later life lending solutions, which includes equity release, from our team of fully qualified advisers.

Equity Release is available to those aged 55+ and involves borrowing against the value of a property using a lifetime mortgage. The loan is only typically repaid when the property is sold and the capital released is tax free.

Borrowers can choose to pay nothing back until the property is sold, they can choose to make fixed monthly interest payments, or they can choose to make voluntary repayments. Even if a client does elect to make repayments, there is no affordability criteria, which is a major benefit to equity release plans.

Interest rates for equity release products are at some of their lowest levels and there are currently over 700 equity plans across the market. They can only be recommended by advisers qualified in this field and clients will also need to seek independent legal advice from a lawyer. In addition, we always recommend that any beneficiaries be informed/involved where possible.

Equity Release can help clients with:

  • Supplementing income in retirement
  • IHT strategy/planning
  • An alternative to drawing from a pension fund
  • Gifting to children/beneficiaries
  • Extending secured loans into retirement
  • Aspirational objectives such as home improvements or holidays

All the plans that we recommend will guarantee borrowers:

  • The right to live in the property for their lifetime
  • The right to move to another property
  • A ‘no negative equity’ guarantee
  • 100% ownership of their property

What we offer:

  • Research which is free of charge and without obligation
  • Confirmation of whether an Equity Release plan is suitable
  • A no obligation report to confirm our recommendation, tailored to the client’s circumstances and requirements
  • Time to decide and reflect without pressure to make a quick decision
  • Consideration of alternative traditional Later Life Lending products where applicable

Who we work with:

  • We have a growing list of professional introducers, including several of the largest Accountants, IFAs and Wealth Managers in the UK. Having worked with these companies for many years, they trust us to provide the most suitable advice to their clients.

Best Buys:

Below is an up-to-date assessment of some of the ‘best buys’ that are currently available in the market based on a married couple, both aged 75 and in good health (note that lower rates and/or larger loans may be available for those clients with a reduced life expectancy).

Last updated Monday 24th January 2022

Loan to Value Rate (Fixed for Life) Overall Cost For Comparison (APR) Early Repayment Charges Product Fee
15% 3.00% 3.04% 5% of initial loan in years 1-5, reducing to 3% in years 6-8 £895
30% 3.11% 3.15% 10% of initial loan in year 1, reducing on a sliding scale to 1% in year 15 £500
40% 3.45% 3.51% 5% of initial loan in years 1-5, reducing to 3% in years 6-10 £0
50% 4.45% 4.54% 10% of initial loan in year 1, reducing on a sliding scale to 1% in year 15 £0

These figures are correct at the time of going to the Internet.

According to a recent study, 9 out of 10 people aged 55 to 80 do not fully understand how equity release works, highlighting the need for borrowers to ensure they seek independent specialist advice to find out whether it should be part of their retirement planning.

© Copyright Professional Mortgage Services. The information contained herein may be based on data obtained from recognised statistical sources, issuer reports or communications, or other sources believed to be reliable. However, such information has not been verified and we do not make any representations as to its accuracy or completeness. Any statements non-factual in nature constitute only current opinions which are subject to change, without notice. The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK.