Equity Release FAQs

Equity Release

An equity release product allows you to access the value (cash) tied up in your home. Rather than leaving the cash tied up in your home, more and more people are choosing to release this money giving them cash to fund retirement dreams, pay off debts or help out family members. You must be over 55 and seek advice from a financial adviser before you can access an equity release product. There are a range of products available which allow you to release money from your home either as a lump sum or in regular smaller amounts, known as drawdown. At Missing Element Equity Release we only advise on lifetime mortgage products. Try out our free Equity Release Calculator to see how much equity you could release from your home.

All equity release products, including lifetime mortgages, are regulated by the FCA (Financial Conduct Authority). They impose strict rules on advisers who recommend these products and the companies that provide them. All lifetime mortgage advisers have to be fully qualified and are required to give you fair and clear advice and recommendations.

Yes, but you will need to raise enough money on a lifetime mortgage to pay off the existing mortgage with your current provider.

To be eligible for a lifetime mortgage you need to be a UK homeowner and aged 55 or over. All applications are subject to the lending criteria of the product provider. Our advisers can answer any questions you have, contact us for a free initial consultation.

You retain full ownership of your home with a lifetime mortgage as long as you abide by the terms and conditions of the mortgage. All lifetime mortgage products provide the right for applicants to live in their home until they die or go into permanent long-term care.

Yes – you will be able to remain living in your home for as long as you are alive or until you go into long-term care, as long as you abide by the terms and conditions of your plan.

Some providers offer an inheritance guarantee to ensure you can leave something from the value of your home. However, this will reduce the amount of money you can borrow.

All lifetime mortgage products provide the right for applicants to live in their home until they die or go into permanent long-term care. If the application is made in joint names and one of you moves into care, the other will be able to stay in the home until either they die or go into long-term care as well.

No, all equity release schemes offer a no negative equity guarantee meaning that when you finally repay the debt (when you or the last person dies or goes into long-term care) the amount to be repaid will never be more than the value of your home (provided the T

This depends on the lifetime mortgage product you decide on. With lifetime mortgages you can usually repay the amount in full but you may incur an early repayment charge. This will depend on the specific scheme, how long you’ve held the mortgage for and the reason for repayment. If the option of early repayment is important to you, your adviser can discuss this with you and take it into consideration when making a recommendation to you.

The Equity Release Council (ERC) is an organisation that was created to promote and support providers offering equity release products. The council is committed to ensuring that consumers are safeguarded and providers offer products that meet the Equity Release Councils rules and principles.

More and more people are now considering a lifetime mortgage as part of their financial planning for retirement. However, you must ensure that you are happy with how the lifetime mortgage works and the terms and conditions associated with it. You need to understand it will impact any inheritance that you leave to your beneficiaries and may impact your rights to state benefits. Because of this, it is a regulatory requirement to speak to a financial adviser before taking out a lifetime mortgage. A financial adviser will be able to listen to your needs and research your options amongst a wide range of mortgage providers.

All of our lifetime mortgage advisers are fully qualified to provide lifetime mortgage advice and hold the Certificate in Regulated Equity Release (or equivalent) qualification. Paul our advisor holds the CeRER, CeMAP

Any money released from a lifetime mortgage could affect means-tested benefits such as Pension Credit and Council Tax Credit. Your state pension is not affected and neither are any benefits based on disability or health. It’s important that you discuss any implications with your financial adviser.

We would recommend that you review your will when taking out a lifetime mortgage. You don’t normally have to alter your will but it will depend how it’s written.

Yes – a lifetime mortgage gives you the right to move to a suitable alternative property. There are some properties which may have restrictions based on the ability to sell the property on the open market when your plan comes to an end. Your financial adviser will be able to explain this in further detail.

If you have been appointed as an “attorney” under either an Enduring or Lasting power of attorney, (or alternatively as a “Deputy” under a court of protection order) please speak to one of our advisers who will be happy to explain what documentation we require and guide you through the advice process.

Yes. Arranging a lifetime mortgage may have an impact on the amount of inheritance tax your estate will have to pay. This is however a complex area and depends on the value of your estate, your situation as well as your personal circumstances. Please talk to us about your needs. Impartial information on inheritance tax can also be found on the Money Helper website.