Equity release is a means of releasing the equity in your home without having to move if you are over the age of 55. Equity release is a general term but by far the most popular product is a lifetime mortgage. This is a loan that’s secured against your home to give you a cash lump sum to spend as you please. In addition, further loans may be taken as and when you need them with a feature called drawdown.
Many people will use the funds released by equity release to make home improvements, assist family members, repay outstanding debt or even take a holiday or purchase a car. If you’re over 55 and a homeowner then you may well be eligible, even if you currently have a mortgage secured against your property.
• Professional advice fees – at PK Group there is no advice fee until submission of an application. Consultations are at our expense, and there is no fee unless you decide you wish to proceed, prior to which any fee we charge will firstly be agreed with you.
• Legal fees as you will need to appoint your own solicitor to act on your behalf.
• Lifetime mortgage provider fees – although many providers provide low cost options and /or allow you to add any fees to the initial borrowing.
There are no monthly payments* to make with a lifetime mortgage. Instead, interest is added to the amount that you owe each month. The loan amount and accrued interest is typically paid back on death or when you move into long-term care.
*However, there are some products that allow you to make voluntary monthly interest payments if you wish.
There are different options with regard to lifetime mortgage products which will suit people with differing needs. PK Group will assess your requirements to see if equity release is right for you. If suitable, we can provide you with whole of market advice to ensure that we find the most appropriate product for your circumstances.
PK Group is a member of the Equity Release Council (ERC) which is the industry body for the equity release sector, focused on setting high standards for consumers. In the right circumstances and with appropriate advice, equity release solutions can provide flexibility and a variety of benefits for you and your family.
“Equity release products can be beneficial for those in later life. Advice from a qualified adviser is paramount to help make the right decision and I will work with you to ensure you fully understand your options.”
