FAQ’s
If you claim benefits your entitlement may be affected.
At the current time any capital over £23,250 means that you have to pay for care
fees in full.
If you are claiming means tested benefits such as Pension credit, or savings
credit and you borrow money via equity release your entitlement to these
benefits may stop.
Yes, the debt will erode some, or all, of your equity
over a period of years. This might mean that there is nothing left for your
children to inherit. On the other hand, house prices might increase and outstrip
the roll-up of the debt. Inheritance tax is assessed by taking the tax-free
allowances away from the value of your property, then deducting any debts. What
is left is taxed at 40%.
In some cases you can reserve part of your home to pass
on, but this reduces the amount that you can borrow.
Yes, the house remains yours for as long as you, or one
of you (if joint applicants) continues to live there.
Yes, providing that there is equity left in your
property you can move to something less expensive. You can also move to
something more expensive. Several lenders will allow you to move without an
early repayment charge after you have had the mortgage for more than 3 or 5
years without an early repayment charge. If you move because you are going into
long term care, or because a partner has died, an early repayment charge won’t
apply.
Yes, although in some cases you might have to pay an
early repayment charge.
In some cases, it is possible, perhaps because you need
a live -in carer, or you find a new partner. It depends on the status of the
person, and their age. Different lenders have different rules, so it is
important to get advice to see what is possible.
Yes, with most plans you make payments of up to 10% of
the original amount borrowed. Some lenders will allow you to pay all the
interest; or make capital payments as well. This means that the debt can be
repaid over a period of years. In most cases you can vary the amount and
frequency of payments. If you make interest payments then the debt will not
increase, many people use this a way of controlling debt until after retirement
when their income reduces.
Yes, equity release can be used to release money from
Buy-to-let properties, or to buy a holiday home.
Yes, mortgages are available on listed properties,
thatched cottages and properties with land.
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