Getting started
Am I old enough?
You need to be at least 55 to take out a lifetime mortgage. The older you are, the more you can generally release, as the plan is expected to run for a shorter period.
Does the home stay in my name?
You keep ownership of your home and carry on living there.
Are there monthly payments?
Not with a lifetime mortgage. Most let the interest build up, with the loan repaid when you die or move into long-term care, and some let you make optional payments, which can reduce the total cost. A retirement interest-only (RIO) mortgage is different: you pay the interest each month.
Can the debt end up bigger than the value of my home?
Not with an Equity Release Council member. Their standards include a no negative equity guarantee, so the amount you or your estate repay can never exceed the value of your home.
How much do you charge for advice?
Your first conversation is free. If you decide to go ahead, my fee is £895, and I'll put that in writing before you commit to anything.
About the advice
What kinds of equity release can you help with?
I advise on lifetime mortgages and retirement interest-only (RIO) mortgages only. If neither is right for you, I'll say so and talk through the alternatives.
Is equity release regulated?
Lifetime and retirement interest-only mortgages are regulated by the Financial Conduct Authority, and Equity Release Council members follow additional standards. Avalon FS Ltd, the firm I advise through, is authorised and regulated by the FCA and is a member of the Council. The details are in the footer of every page.
Do we have to meet in person?
No. I work with clients remotely, so you can talk to me from home. A few steps involve other people, such as the lender's valuation of your property and seeing a solicitor, and I'll explain how each one works.
Will a solicitor be involved?
Yes. Equity Release Council standards require independent legal advice from a solicitor before you go ahead, and we will arrange this on your behalf. It's there to safeguard you.
How soon could the money be available?
It's usually a matter of weeks from application to funds, depending on the lender and the solicitors involved. You don't need to rush, and you can take as long as you like to decide.
What it costs and how it's repaid
What will the interest rate be?
Rates differ between lenders and plans, and they change over time. Equity Release Council standards require the rate to be fixed or capped for life, so you'll know the most it can be. Your personalised illustration shows the rate and the total cost.
How quickly does the loan grow?
If the interest is added to the loan it can grow quickly, since interest is charged on the interest already built up. Paying some or all of the interest, where the plan allows, slows this down. The calculator gives an illustration.
Besides interest, what else will I pay?
You may face arrangement, valuation and legal fees, and some plans charge if you repay early. My own fee is £895, confirmed in writing before you go ahead. Your personalised illustration should list every cost.
What if I want to pay it back early?
Usually you can, but some plans apply an early repayment charge, while others allow repayments without one. Ask about early repayment charges and any repayment allowance before you decide.
Can I have the money in instalments?
Yes. With drawdown you take an initial amount and keep a reserve to draw on later, and you only pay interest on what you've taken. The lifetime mortgages page has more.
What am I allowed to spend it on?
Most plans leave that up to you. People commonly use the money for home improvements, clearing a mortgage or debts, helping family and boosting retirement income. We'll talk through whether it suits what you have in mind.
Will it affect my benefits?
It can. Money you release may count towards means-tested benefits, such as Pension Credit. It's important to check before you decide, and I can talk through how it might affect you.
Your home and your family
Does this mean less for my children to inherit?
Yes. It reduces the value of your estate, so there will be less to leave them. Inheritance protection can set aside a share for them, though that reduces how much you can borrow. You can also make payments towards Capital & Interest or Interest Only. It helps to talk to your family early, and they're welcome to join our conversations.
What happens when I die or need long-term care?
The loan and interest are repaid, usually by selling the home. Anything left goes to your estate. With a no negative equity guarantee, your estate will never owe more than the home is sold for.
Will I be able to move later?
Equity Release Council standards include the right to move to another suitable property, subject to the lender's criteria. In practice the plan may be able to move with you to the new home, or you can repay it. Check the terms of any plan first.
I haven't finished paying my mortgage. Is that a problem?
Usually not. Your existing mortgage is repaid from the money released, and you receive what's left. You can include it in the calculator.
Is there something we haven't covered?
Just ask me. The first conversation is free, with no obligation.