We have provided a range of answers to a number of the common misconcpetions about equity release. Just click on any of the statements below to reveal our information. If you need to know more then do get in contact or book a free telephone chat.
YOU WILL NEED TO TAKE LEGAL ADVICE BEFORE RELEASING EQUITY FROM YOUR HOME AS LIFETIME MORTGAGES AND HOME REVERSION PLANS ARE NOT RIGHT FOR EVERYONE.
With a lifetime mortgage the most popular choice for equity release, you remain 100% the legal owner. Only if you have a home reversion plan then you do ‘sell’ part or all of your home to a provider. However, in all cases you will stay in your home for the rest of your life or if you move into long term care.
The industry is regulated by the Financial Conduct Authority (FCA) and all lenders, and advisers must adhere to their requirements and standards. All lenders we work with are members of the Equity Release Council which is dedicated to protecting people that hold equity release plans. Plus they all adhere to their Code of Conduct.
You can stay in your home for the rest of your life, but if circumstances change, you can ‘port’ the lifetime mortgage to another suitable property. This is down to the lender criteria, but generally as long as it is standard construction this should not be an issue.
Most lifetime mortgages will allow you the flexibility to make ad-hoc repayments if you so wish. You can also opt for a product that allows monthly repayments to service the interest. Your adviser will give you more details.
It’s true that rates are generally more than traditional mortgages, but there are safeguards which traditional mortgages don’t offer. Your rate is determined on your age, the value of the property and how much you wish to borrow.
All products come with a ‘No Negative Equity Guarantee’. Whilst it is unlikely that your home would owe more than the debt, all lenders we work with understand that markets can change and therefore provide this guarantee. Your family or estate will NEVER be asked to make up any shortfall in a negative situation should it occur. When your home is sold in the future any equity passes to your family, and you can opt for an ‘inheritance protection’ feature if you so wish.
Often friends or family members are misinformed and often relate back to schemes that no longer exist in the modern later life lending sector. We always recommend getting advice from a fully qualified professional who will give you the facts. You would of course get legal advice from your solicitor, rather than trust the opinion of a friend, so it makes sense to do the same with your financial planning. So talk to an expert at CFS Equity Release. Get the facts, not fiction.
On the sale of your home any equity passes to your loved ones as per your Will instructions. If it is a priority to ensure a certain level of inheritance you can take out ‘Inheritance Protection’ this will safeguard a percentage of your estate from the outset, so it is available to you or your family in the future. You can also consider making repayments that will reduce the effect of interest rolling up and compounding and thereby making more equity available in the future.
A lifetime mortgage is not suitable for everyone and may affect your entitlement to means tested benefits, so it is important to seek financial advice before taking any action. If you are considering releasing equity from your home, you should consider all options available before equity release.
The interest that may be accrued over the long term with a Lifetime Mortgage, may mean it is not the cheapest solution. As interest is charged on both the original loan and the interest that has been added, the amount you owe will increase over time, reducing the equity left in your home and the value of any inheritance, potentially to nothing.
APPROVED BY OPENWORK PARTNERSHIP: xx/xx/2025
A lifetime mortgage is not suitable for everyone and may affect your entitlement to means tested benefits, so it is important to seek financial advice before taking any action. If you are considering releasing equity from your home, you should consider all options available before equity release.
The interest that may be accrued over the long term with a Lifetime Mortgage, may mean it is not the cheapest solution. As interest is charged on both the original loan and the interest that has been added, the amount you owe will increase over time, reducing the equity left in your home and the value of any inheritance, potentially to nothing.
Although the final decision is yours, you are encouraged to discuss your plans with your family and beneficiaries, as a Lifetime Mortgage could have an impact on any potential inheritance. We would also encourage you to invite them to join any meetings with your Financial Adviser so they can ask questions and join in the decision, as we believe it is better to discuss your decision with them before you go ahead.
Equity release is a Lifetime Mortgage / Home Reversion plan which is secured against your property via a first legal charge. To understand the features and risks ask for a personalised key facts illustration.
Any existing mortgage(s) must be paid off on completion. Any money released, plus accrued interest to be repaid upon death, or moving into long-term care.
Equity release will affect potential inheritance and your entitlement to means-tested benefits both now and in the future.
We provide initial advice for free and without obligation. Only if your case completes would a typical fee of 2% of the loan amount released be payable subject to a minimum £1250.
CFS Equity Release is a trading name of Delphic Financial Planning Limited FCA No. 486037 which is an appointed representative of The Openwork Partnership a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority FCA No. 408285
Delphic Financial Planning Limited – Registered Office: 17 Heritage Park, Hayes Way Cannock WS11 7LT – Registered in England No. 06613871
