What is the minimum and maximum age for equity release?

The minimum age for equity release is usually 55, although this can differ from provider to provider. If it's a joint application, the youngest applicant would normally need to be 55 or over. There is no maximum age for equity release, but some providers may set their own upper limits.

Is the loan secured against my home?

Yes. All Equity Release solutions are secured against your property.

How long does equity release take?

There is no specific time frame for the process for processing equity release applications. The specific product, provider and your personal circumstances can all affect how long the process takes, but as a guide it usually takes between 8-12 weeks.

Is there an affordability assessment?

No. Because Equity Release is secured against your property and it is not necessary that regular repayments are made against the borrowing.

How much can I borrow?

You can usually expect to be able to borrow up to 55% - 60% of the value of your property with equity release. However, the exact amount is dependent on factors such as your age, health and property value.

How much does equity release cost?

As with a regular mortgage, there are some costs that you should be aware of as you begin the application process. They include arrangement fees, solicitors' fees and interest rates.

When do I have to repay the full amount of the loan?

The loan is usually repaid when you die or move out of your home into long-term care. If you borrow as a couple then the loan is only repayable on the death of the second person or when they move into long-term care.

Is the interest rate fixed?

Interest rates are usually fixed for the life of the loan. If they are variable, they will usually be capped with an upper limit above which they are guaranteed not to rise during the term of the loan.

What happens if I go into care?

If the mortgage is in your name only, your house will be sold and the loan plus interest is repaid. Any money left over can help pay the costs of your care. If the mortgage is in joint names, you and your partner can live in the house until the last person passes away or moves into a care home permanently. Then the house is sold. Any money left, after the loan and interest has been repaid, can be used to pay for or towards any care costs.

How do I repay an equity release mortgage?

The loan is usually repaid through the sale of your home after you pass away or move into long-term care. However, you can also choose to pay some, none or all of the interest early.

Are there early repayment options?

Depending on the provider and your personal circumstances, some solutions allow for early repayment.

Other payment options include:

• Optional repayments: You can make partial repayments whenever you like to manage the amount owed.
• Make monthly interest payments: You can pay some or all of the monthly interest to reduce the overall cost of the loan.
• Pay back the full loan and interest: You can pay back the full amount early, but you may have to pay an Early Repayment Charge.

Depending on which product you take out, there are limits on how much you can repay and how often you can make repayments. A financial adviser will help you find the right option.

Can I still protect an inheritance with equity release?

There are steps you can take to protect how much you can pass on as an inheritance.

Choose Inheritance Protection: This option lets you secure a proportion of the net sale proceeds of your home for the beneficiaries of your estate when you die. Choosing this option will reduce the amount you can take as a loan. You'll need to decide on the percentage you would like to protect (the Protected Percentage) when you apply for a lifetime mortgage.

Make repayments during your lifetime: You can choose to repay some none or all of the interest on the loan. You can also pay off some of the capital. This way you reduce the amount you owe, which could leave more for your family to inherit on your death.

Living inheritance: You can use a lifetime mortgage to pass on money as a ‘gift’ while you’re still alive. For example, you may want to give a living inheritance to help children with university fees, wedding costs or getting onto the property ladder. If you give the money this way, the recipient might need to pay inheritance tax in the future.

Can I use equity release to pay for care?

Yes, you can use the money you release from your home to for pay care home fees, in-home care or any other care related costs. You can also use it to adapt your home for care, such as installing alarms or a walk-in shower.