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Is Equity Release The Right Option For You?

Equity Release Options

How Can Friends Capital Help with Equity Release?

Equity Release

We offer a range of products which gives you access to release equity tied up in your home, if you are over the age of 55. You can either release the cash as a lump sum, release it in smaller amounts over time or a combination of both. 

Friends Capital have existing relationships with lenders and are experts in providing equity release advice. We can help you find the best possible mortgage deal available for you. We will review your personal circumstances and then search the entire market to ensure you get the best mortgage rates possible. We will then deal with all the paperwork, submit your mortgage application, liaise with your mortgage lender and solicitor, and ensure that your mortgage application is completed as quickly as possible. We can:  

• Save you money on your mortgage deal 
• Offer a free consultation 
• Offer unbiased financial advice 
• Save you time in your mortgage application 
• Give you a dedicated account manager who is available to you through the process 

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Is Equity Release The Right Option For You?

Whether equity release is the right option for you depends on your circumstances such as:

• your age
• your income
• how much money you want to release
• your plans for the future.

When releasing equity, it’s tempting to focus on the immediate boost you will get from the money you unlock, but you need to look at how it will affect your future choices and financial situation in later life. We would also always advise you to speak to family as Equity release will affect any inheritance where relevant, as well as potential tax implications.  

Equity Release Options

There are two equity release options available:

Lifetime Mortgage

You can take out a mortgage secured on your property, provided it is your main residence.  You can choose to make repayments or let the interest roll-up. The loan amount and any accrued interest is paid back when you die or when you move into long-term care. Important facts you should know are:

• The minimum age at which you can take out a lifetime mortgage is usually 55
• You can normally borrow up to 60% of the value of your property. How much can be released is dependent on your age and the value of your property.
• Interest rates must be fixed or, if they are variable, there must be a “cap” (upper limit) which is fixed for the life of the loan.
• You have the right to remain in your property for life or until you need to move into long-term care, provided the property remains your main residence and you abide by the terms and conditions of your contract.
• You have the right to move to another property subject to the new property being acceptable to your product.

Home Reversion

You sell part or all of your home to a home reversion provider in return for a lump sum or regular payments. You have the right to continue living in the property until you die, rent free, but you have to agree to maintain and insure it. The percentage you retain will always remain the same regardless of the change in property values, unless you decide to take further cash releases. At the end of the plan your property is sold and the sale proceeds are shared according to the remaining proportions of ownership. Important facts you should know are:

• Some home reversion providers insist you’re at least 60 or 65 before you can apply.
• You have the right to remain in your property for life or until you need to move to long-term care, provided the property remains your main residence and you abide by the terms and conditions of your contract.
• You have the right to move to another property subject to the new property being acceptable to your product provider as continuing security for your equity release loan.
• The product has a “no negative equity guarantee”.

How Can Friends Capital Help with Equity Release?

Friends Capital have pre-existing relationships with equity release lenders. We can search the entire market and get access to the best and most exclusive deals available. Then we will choose the deal that are most appropriate to your personal circumstance. We can:

• Find you a lender that specialises in equity release
• Find you a deal appropriate to your personal circumstance
• Offer unbiased financial advice
• Give advice on what mortgage lenders will require, including giving you advice on an exit strategy for the mortgage end
• Give you a no obligation mortgage quote
• Deal with all the paper work, liaise with the lenders and solicitors. We will also make sure the application goes through as quickly as possible

Two Steps to Contacting Friends Capital 

Step 1 

Either call us, email us , book an appointment online or request a call back below.

Step 2 

One of our friendly advisors will either call you back within 24 hours (usually the same working day), or will take details from you in order to best deal with your situation. 

When you speak with us, we will take a ‘fact find’. At this stage we take basic details about your situation. We will then search the whole of the market and find you the best deal available. 

If you are happy with the deal that we offer, we will then contact the lender for you and get you what is called a ‘decision in principal’. 

If you’re happy with the decision in principal then we will secure this deal for you and deal with the application for you on your behalf.