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If you are looking for finance it's understandable to have questions, so we've put together some answers to common questions you might be looking for.

What is equity release?

Equity release is a way of releasing the wealth tied up in your property without having to sell it and move to another home. You can either borrow against the value of your home or sell all or part of it in exchange for a lump sum or a regular monthly income. Some plans give you the option to "draw down"" further equity (cash) at a later date, based on your requirements.

What types of equity release are there?

There are two main types of equity release: Lifetime Mortgages and Home Reversion plans. Both types of plan are regulated by the Financial Conduct Authority (FCA). By using an equity release product, a home owner can draw a lump sum or regular smaller sums from the value of their home, while continuing to live in it.

How much can I borrow?

The provider will instruct a surveyor to give a professional valuation of your property that would define the amount that could be released. How much can be released is also dependent on your age and that of your partner (if you are making a joint application) and the value of your property. Some providers may offer larger sums to those with certain past or present medical conditions, or even "lifestyle factors", i.e. smoking habit.

Can I release equity from my home if I have not yet paid off my mortgage?

If you still have an outstanding mortgage on your property you will need to pay it off in full, either by using some of the proceeds from the equity you release or from other funds. Once that is done, the rest of the money you release can be spent as you wish.

How old do I need to be?

If you take out a Lifetime Mortgage you will remain the owner of your home. The deeds remain in your name and you also have the right to remain in your property for as long as you live.

Will I still own my own home?

If you take out a Lifetime Mortgage you will remain the owner of your home. The deeds remain in your name and you also have the right to remain in your property for as long as you live.

Will I lose my home?

Taking out an equity release plan is a big decision and making sure you release cash safely is extremely important. Equity release advice and plans are fully regulated by the Financial Conduct Authority (FCA), ensuring that customers who take out an equity release plan are protected throughout the whole process. For your extra safety, we also recommend Equity Release Council approved equity release plans. All of these plans allow you to remain in your property until you and your partner pass away or move into long term care. You are not at risking of losing your home, this is guaranteed and is written into the offer that you and the lender will sign.

Can I still leave an inheritance?

All equity release plans may reduce the amount you leave as an inheritance; however, there are plans available which allow you to guarantee an inheritance to your loved ones when the plan comes to an end. With these plans, you can choose a percentage amount to ringfence and this will be protected to ensure your children get the inheritance you want.

Am I able to end the plan early?

An equity release plan is intended to last for the rest of your life; however there are ways in which you can repay the plan back early.If you have taken out a lifetime mortgage and wish to repay earlier than planned, you will have to pay off the full amount, including the loan and interest accumulated. There may be an early repayment charge. You should check this before you proceed with any type of plan.

Can I still take out an equity release plan if I have an outstanding mortgage?

Yes. Equity release providers allow you to release cash from your home if you have an outstanding mortgage on your property, however all providers would expect you to use the cash you release to pay off the outstanding mortgage owed first.

Can I change my equity release plan?

If you have already taken out an equity release plan, then you may be eligible to change to a more competitive plan. You may even be able to release more cash if your home has increased in value.

What happens if I decide to move into long-term care?

If you move out of the property into a care home, the equity release plan will come to an end, meaning your house will be sold and the debt will be repaid in full to your equity release provider. If you are a couple and only one of you moves into care, your partner can remain in your home until they pass away or move into long term care too. If you live in your home and receive domiciliary care, then the equity release plan will continue, allowing you to remain in your home until you pass away.

Am I able to move house if I have released cash from my home?

Yes. Plans that are approved by the Equity Release Council which allow you to move home if you wish. The move is subject to provider criteria, which can differ between providers.

Still have a question?

If we we still haven't answered all of your questions feel free to give is a call and we can go through anything you want to know about car finance and how Beagle Equity Release can help you out.

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