Equity release options include both Lifetime Mortgages and Home Reversion schemes. We can advise on and arrange Lifetime Mortgages, and will refer to a specialist for Home Reversion schemes.

Myth 1 - It is Unregulated: 

All Equity Release providers are regulated and supervised by the Financial Conduct Authority. Good Life Mortgage only recommend lenders who are members of the Equity Release Council, who follow the council’s statement which include the “no negative equity guarantee” and “security of tenure” which guarantees you can stay in your home for life. 

Myth 2 - I cannot have Equity Release from my home because I still have a mortgage on it: 

Generally, one of the most common uses for Equity Release are to pay off an existing mortgage or debts. 

Myth 3 - I could lose my home or be forced to move out: 

With a Lifetime Mortgage you are still the legal owner of your home. At Good Life Mortgage, I only recommend lenders that are member of the Equity Release Council, following the principle “security of tenure” as above. 

Myth 4 - I will no longer own my home: 

With a Lifetime Mortgage, you are still the legal owner of your property, you are simply borrowing against it. 

Myth 5 - I will leave my family in debt: 

At Good Life Mortgage, we only recommend lenders approved by the Equity Release Council and all plans come with a no negative equity guarantee, so you will never owe more than the value of your home when it is sold, and you will not be leaving your family in debt. 

Myth 6 - I will have to make monthly payments with a Lifetime Mortgage: 

Making payments is optional dependent on which product you have. The interest rolls up with interest being charged on that interest and is paid when you repay your loan. 

Myth 7 - I can never move house again: 

If you meet the criteria of your Equity Release provider, there is no reason you cannot move and take your plan with you. There may be costs associated with moving the plan, but this will be explained with you fully before you take out Equity Release. 

Myth 8 - There will not be anything left to leave my loved ones: 

There may be the option to ring fence some of the equity as inheritance for loved ones and should you choose to do this it would reduce the amount available for a Lifetime Mortgage.

Myth 9 - This is an expensive way to borrow: 

Most lenders have fixed rate products for life. Equity Release Interest rates will be based on your personal circumstances. If you have surplus income, you can make payments to reduce the debt. This is optional. Funds can be taken as a drawdown, as and when you need them, which means you will only pay interest on the funds that have been borrowed. The drawdown known as a cash facility is not guaranteed and may reduce or be removed at any time and is based on your property value and the terms and interest rate available from your lender.

Possible uses of Equity Release: 

You can spend the money as you wish but it is not recommended to be used for financial investments. Retirement mortgages can be used to pay off a mortgage, debts, providing a deposit to a loved one as a deposit for a home, or to purchase a home for yourself, purchase a buy to let property, home improvements/adapt a home, to provide an income for retirement, to provide funding to look after a loved one, to extend a lease on a property, to start a business, holidays, car/motorhome.