Equity Release Explaine
An equity release plan allows homeowners over 55 to access some of the cash locked in the value of their home.
The value of your home, minus any outstanding mortgage and any other loans secured against it, is the equity you have in your property. This equity is often passed on as an inheritance, however, an increasing number of people are tapping in to some of this wealth to help boost their retirement finances.
After years of working hard to make monthly repayments, your home is likely to be your biggest asset, particularly if you have benefitted from an increase in house prices over the last few decades.
an alternative way to release the equity in your home would be to sell and downsize, however, leaving the family home and neighbourhood can be an emotional upheaval.
With people living longer and pensions not being what they once were, for many, savings have to stretch a lot further to last throughout retirement. That's where equity release could help you.
Are you eligible?
Tens of thousands of people are already enjoying the benefits of unlocking the cash from their home. However, it's not suitable for everyone, which is why it's important to get independent advice before you make a decision.
Downsizing Protection
If for any reason you need to move to a smaller home, you can pay the loan back early usually without incurring an early repayment charge. Or in some cases, take the loan to a new property.
Inheritance Protection
If you want to guarantee an inheritance to your loved ones, you can ring-fence a portion of your property value with a protected lifetime mortgage. This allows you to guarantee that a percentage of the future value of your home will be left to your family.
Enhanced
If you or your partner have any health conditions or make certain lifestyle choices, you may be able to release more money, get a better interest rate or both.
Interest Payments
This allows you to choose how much interest you want to pay, and for how long you want to pay the interest charged each month. This option means that by paying some of the interest off during your plan, the amount the provider takes at the end will be less.
Partial Capital Repayments
One of the newer features allows you to make voluntary, ad hoc repayments of up to 10-15% depending on the plan and how much you've borrowed each year, without early repayment charges.
The facts about unlocking cash from your home
Receive a tax-free cash lump sum
With a lifetime mortgage you still own your own home
You can stay in your home for as long as you choose-for the remainder of your life
Typically no monthly repayments to make (unless you want to)
You will never owe more than the value of your home with Equity Release Council approved plans
You can spend your tax-free cash in a wide variety of ways
You can move house with Equity Release Council approved plans (subject to criteria)
Option to guarantee an inheritance for your family with some plans
It will reduce the value of your estate and may affect your entitlement to means-tested benefits
Home Reversion
While most of our customers find that a lifetime mortgage suits their needs best, there is another type of equity release plan available.
A home reversion plan allows you to sell part or all of your home to a reversion plan company in exchange for a tax-free cash lump sum, with no monthly repayments to make.
You have the absolute right to stay in your home rent-free for as long as you choose which is why you don't typically receive full market value for the share of the home you sell.
Both you and the reversion plan company share in any increase in your property's value, providing you have not sold 100% of its value. With home reversion plans you are able to guarantee inheritance to your beneficiaries.
When the plan comes to an end, the home reversion provider takes its percentage share of the sale proceeds from your property.
We Are Here To Help
What Our Clients Say About Us
Couldn't recommend Funding Falcon highly enough. Having little to no experience with dealing with retail finance, the customer service was incredible. Amy explained the whole process and made the whole process a pleasure and so straightforward .Questions were always answered promptly and the whole team had a wealth of knowledge. There was a longer than usual wait during the approval process (not Funding Falcons fault) My account manager Paul kept me up to date the whole time and ensured things were chased up with the FCA.Once approval was granted, he arranged a call the next day and a walkthrough of the portal. Again customer service was 10/10 and made the whole process so simple.If you're considering retail finance for your business, I couldn't recommend Funding Falcon more highly. Professional, informative and more importantly the product itself has opened up a whole new customer base.
Paul was extremely informative and helpful. I know I have the ongoing support and feel I’m good hands. Really nice friendly guy.
A highly professional and friendly service throughout. Making a decision like this is no small matter, therefore the clear and helpful information provided made the choice easier.
One phone call and a visit has given us the ability to pay off our existing mortgage along with extra cash to spend on home improvements. There was no pressure. they arranged everything and took the stress away by making things clear and giving us the ability to make the right choice.
- Could not have been any easier! Very clear and simple process for retailer and consumer.
Great process from the initial enquiry through to being set up and ready to offer finance through Funding Falcon. The team there has been so friendly and helpful. This is a huge asset to offer as a business, and it being easy to use makes it so much more worthwhile.
Here to help
For more info, to book a visit, or if you have any questions, feel free to contact us using the form below, or call: 0203 149 2490
Tailor-Made Equity Release to Suit You
An independent advisory service, that compares the whole market to find the right plan for you.
We can offer expert advice, over the phone or face-to-face.
to find out more, or to arrange a FREE, no-obligation consultation get in touch with us today on: 0203 149 2490