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How do I release Equity from my home?

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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.

Equity Release Myths busted, Q&A
Is a Lifetime Mortgage
right for me?

Equity release Q&A

void

What is Equity Release

What is
a Lifetime Mortgage?

A lifetime mortgage is a type of equity release that allows homeowners aged 55 and over to borrow money against the value of their home without having to make monthly repayments. Instead, the loan, plus accrued interest, is repaid when the home is sold, typically after the borrower dies or moves into long-term care.

Lifetime Mortgages

The most popular type of equity release is a lifetime mortgage. When customers take out a lifetime mortgage, they retain full ownership of their home and any interest on the loan can be paid as you go along or rolled up with nothing to pay until the end. The loan and any outstanding interest are then repaid by your estate when you either die or move to permanent long-term care (or in the case of a couple the last person living in the home).

A lifetime Mortgage accrues compound interest, some lenders add it monthly and some lenders add it yearly and have an anniversary date. To avoid compound interest the full amount of interest must be paid as per the lenders terms and conditions. Making interest payments is voluntary and you do not have to pay it if you can't afford to.

The amount available to borrow depends on things like a customer’s age, their health and how much their property is worth. Lifetime mortgages are available to people aged 55 and over.

We can advise & arrange Lifetime Mortgages & will refer to approved Home Reversion Schemes. To understand the features & risks, ask for a personalised illustration.

Equity Release may not be right for everyone & it may affect your entitlement to state benefits & will reduce the value of your estate.

Think carefully before securing other debts against your home. By extending the term of these debts, you will be increasing the overall cost.

Home Reversion

When a customer takes out a home reversion plan, they sell all or part of their home in exchange for a lump sum or a regular monthly income, while retaining the right to remain in it, typically rent free. You will know precisely what portion of your property you have parted with and, equally, what has been ring-fenced for later use, if that is what you have decided to do, possibly to leave in a will. 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. receives a share of the proceeds. Much like a lifetime mortgage, the amount of money a customer can raise depends on things like a customer’s age, their health and how much their property is worth. Home reversion plans are available to people aged 60 and over

What to expect
from your
Adviser

What are the benefits of
A Lifetime Mortgage?

You still own your home, and you can stay in it for the rest of your life.
The money you release is tax-free.
You will never owe more than the value of your home because of the “no negative equity” guarantee.
Interest rates are fixed for life.
You can downsize and move to a new property providing the new property is acceptable to your lender.
You have the right to make penalty free payments on the loan which will slow down the debt increasing.

What to expect from you adviser

Benefits of EquityRelease

Have an initial conversation with myself, your qualified Later Life & Lifetime Mortgage Adviser. I will check to see if you are eligible and your home is suitable.
Review your requirements with myself, your qualified Later Life & Equity Release Adviser.
Recommendation, application and home valuation.
Confirmation of your offer.
Receiving your money.

Am I eligible for a Lifetime Mortgage?

Testimonials

After searching the internet for somebody suitable to help my 81 year old mother with her equity release I came across Meral, after an initial chat on the phone I just knew that my mother would be in safe hands with this kind, understanding patient lady who really knows her stuff when it comes to equity release. My mother sent me a handwritten note through the post and asked if I could place it with the reviews as she doesn’t know how to do them. From my first meeting with Meral Kendrick I sensed that she would be working in my interest. I would really recommend her as she dealt with my equity release with efficiency and care. Mrs Stalford.

Meral really did go above and beyond our expectations and we cannot thank her enough. Review Nov 2022

Overall Rating: 5, Quality of Advice: 5.0,Quality of Service: 5.0, Value for Money: 5.0

What were the circumstances that caused you to initially look for an equity release adviser?

Following our retirement dream of having a holiday home by the sea.

How has Meral Kendrick helped you?

Since Meral did a spectacular job of obtaining an equity release for my mother we reached out to her, to help us achieve our dream of buying a holiday home.

Have you seen the outcome you were hoping for?

We are bowled over with the absolutely fantastic service that Meral has to offer, she really does work like a well oiled machine, her communication skills, drive and care and thoughtfulness to get us the very best deal to suit our situation and needs really has made us feel so very lucky and blessed to have chosen Meral as our financial advisor.

What could they have done better?

Absolutely faultless!! Review March 2023

Please be aware that by clicking the following link you may be leaving www.goodlifemortgage.co.uk website. Please note that Good Life Mortgage nor HL Partnership Ltd are responsible for the accuracy of the information contained within the linked site(s) accessible from this page.

To read more reviews, follow this link to my Vouched For Profile:

https://www.vouchedfor.co.uk/financial-advisor-ifa/lincoln/064244-meral-kendrick

As part
of my
service ...

Eligability

As part of my service

Wouldn't you rather have face to face advice? Not all advisers offer this.

There is no time limit to our appointment. Some advisers only have 1 hour. As part of my service, I offer face to face advice. Your appointment can be arranged at your home, by appointment at my office, over the phone or by a video call – all at a time to suit you. If you have a question, you can contact me at any time,including over the weekend. I will work at your pace, with care and understanding.

I aim to provide advice that is delivered in a caring way, delivering solutions tailored to you.

There are no call centres here, just advice tailored to your personal circumstances.

Contact me to book your free initial Consultation. Any broker fees will be agreed with you after an initial review of your case.

I only recommend lenders that are approved by: The Equity Release Council.

Good Life Mortgage is proud to be a member of The Equity Release Council

Check out my customer reviews here

Try my Instant Equity Release Calculator with no personal details required

At your appointment, I will review the following alternative options:

If you have considered downsizing, selling your home and renting, getting a lodger, using existing savings or investments, ask for assistance from relatives, apply for benefits or a grant, reduce expenditure, use pension lump sums and whether you have considered how you will fund your care in the future.

To see if you eligible for a standard residential mortgage or a retirement interest only mortgage; Checking lenders affordability and lending criteria.

If these options are not available to you, I will review you for a Lifetime Mortgage.

I am a qualified Later Life & Equity Release Advisor and specialise in this area.

The main eligibility criteria are that:

You are aged 55 or over
You are a homeowner and own a property in the UK
Your property is worth at least £70,000
The lender will consider your homes location, value and condition

You must clear any existing mortgages, either from savings or with the Lifetime Mortgage funds, after which you can spend the money however you wish.

You do not need to have a good credit score and the lender does not require you to meet any affordability criteria.

You can take a Lifetime Mortgage more than once. There may be additional funds from your existing lender, which you can release with a drawdown plan or by a further advance. Alternatively, you can replace your existing Lifetime Mortgage plan with a new one that repays your current lender and provides you with additional funds.