What is equity release?

Equity Release Schemes are also known as "Lifetime Mortgages".

If you are a homeowner aged 55+ with little or no mortgage equity release schemes can help you release some of the money tied up in your home to improve your retirement, without any need to move or to make any monthly repayments should you prefer.

The amount which can be released is determined solely the age of the youngest applicant and the property value. A person of an older age can release a higher percentage of the value of their home, than a person of a younger age, as they are not expected to live as long.

The cash that is released by equity release is tax free and can be spent in any way that you wish, such as to:

• Replace your car
• Decorate your home
• Provide additional income
• Or even pay off debts … the choice is yours!

Equity Release Plans - SHIP standards

Equity release schemes which also meet the Safe Home Income Plans (SHIP) standards will provide you with the following valuable safeguards:

• You cannot lose your home
• A no negative equity guarantee, meaning that the loan plus interest would never exceed the value of your home
• The right to remain in your home for the rest of your life
• The freedom to move to another property without financial penalty
• All approved companies must agree to provide a fair, simple and complete presentation of their equity release plans.
• You must appoint an independent solicitor who will explain to you all of the conditions of the equity release plan before you finally commit to an equity release scheme.

Equity Release Plans - FSA regulation

The Financial Services Authority (FSA) regulates the advice and marketing of equity release schemes and therefore you will need to seek advice from a financial adviser who has passed a specific equity release qualification. Our directory will allow you to search for an equity release adviser in your area, listings displaying the 'Verified' or 'Premium verified' logos indicate that we have checked they have the relevant equity release qualifications to advise you. Begin by searching for a local equity release adviser.

SeekER is unique in that not only does it give you valuable information about schemes but also helps you find both specialist financial advisers and solicitors in your own locality who are experienced in equity release. You can start searching for a local solicitor specialising in equity release today.

“Equity release” includes home reversions plans and lifetime mortgages. To understand the features and risks ask for a personalised illustration.