Equity release advisers
Looking to release some equity from your home? Our specialist equity release advisers can guide you through the whole process. Message usDownload our equity release guide
Equity release and lifetime mortgages
When approaching retirement, you may worry about how you can make ends meet when you stop working. Will your pensions be enough to sustain the lifestyle you would like in the future?
You may decide that you would like some additional funds to allow you to enjoy your retirement more.
Your main residence may be the most valuable asset you have acquired during your working life.
Benefits of equity release
Receive a lump sum of tax-free cash
No obligation to monthly repayments
The right to remain in your property for the rest of your life
Reduced inheritance tax liability
Debt consolidation – including existing mortgages
Spend the money however you wish
No negative equity guarantee
Meet our team
Meet our team
Independent Advice on Lifetime Mortgages and Equity Release
Releasing some of the wealth from your home can help with things such as: home improvements, paying off existing mortgages, clearing debts, dream holidays, second homes, school fees and helping with children’s house deposits.
The new range of Lifetime Mortgages from a reliable equity release provider are a valuable option to have for retirement and financial planning, providing access to tax free capital to spend as required. No repayments are required during your lifetime unless you choose to, whilst you retain full home ownership.
As independent equity release advisers, we offer advice on equity release and Lifetime Mortgages from the whole of market from lenders approved by the Equity Release Council.
At Hawsons we don’t offer advice on home reversion plans.
Choosing the right company to help you release money from your home is important.
The equity release market has a wide range of options available to suit lender’s needs. With many different options, it is important to get expert advice to ensure that you gain access to the best product for your situation.
At Hawsons Wealth Management, we pride ourselves on a personal service from an Independent Financial adviser specialising in Equity Release. Being an independent equity release adviser means that we are not limited to the lenders we can recommend. We can provide advice on the whole of the market, meaning you will receive the best available product for your requirements.
Misconceptions of equity release
Equity Release has had a negative reputation over the years. In the past, some consumers suffered from various unfavourable outcomes such as negative equity on their homes. In recent times, significant changes to the product’s regulation have seen equity release become a hugely beneficial and effective way to help with financial planning.
Discussions about equity release with friends and family often provoke a negative initial reaction. This often deters consumers from exploring the product further. We are more than happy to involve family members in the discussions around equity release and help to allay some of the misconceptions.
The following statements are misconceptions of Equity Release that do not apply to the modern style Lifetime Mortgages:
1) We will not be able to move home.
False. All equity release plans approved by the Equity Release Council guarantee the right to move your plan to a new property as long as the property meets lending criteria.
2) Our debt may exceed the value of the property.
False. All plans approved by the Equity Release Council have a no negative equity guarantee. This means that you will never owe more than the value of your home. Therefore, excess debt will not be passed on to your beneficiaries.
3) We will no longer own our home
False for lifetime mortgages. You will always own your home with a lifetime mortgage – the most popular type of equity release plan.
4) We will have monthly repayments
False. You are not obliged to make monthly repayments with a lifetime mortgage. The mortgage interest rolls up until death of the applicants (or permanent movement into long-term care). When the plan comes to an end, the capital and rolled up interest will be repaid. Plans that allow partial capital or interest payments to be made are available depending on your circumstances.
Lifetime mortgages explained
A lifetime mortgage product is the most popular Equity Release product currently available.
- You retain 100% ownership of your property
- You have the right to sell at any time
- You can transfer/port the mortgage to a new property that is acceptable to the lender
However, unlike a conventional mortgage, you are not required to pay mortgage payments throughout the term. You can let the interest ‘roll-up’ and accumulate. The mortgage will continue until you or, if in joint names, the last survivor either passes away or moves into long term care. Another key difference between a lifetime mortgage and a conventional one is the way in which your loan sum is calculated. With a conventional mortgage, income and financial commitments are the significant drivers of affordability. Whereas, for lifetime mortgages, the age of the youngest applicant and the property valuation and potentially any health issues.
You must be a homeowner of at least 55-years-old to qualify for an equity release Lifetime Mortgage.
The older the applicant and the greater the amount of equity owned in the property, the larger the amount of loan available.
Usually, the rate of interest for equity release is fixed for life. Therefore, if you decide to let the interest roll-up, you can accurately forecast the sum owed throughout the term on a year by year basis. You will receive annual statements that show the sum owed to the lender.
Some clients may prefer to make the interest payments to avoid any roll up of outstanding debt.
An applicant’s income and financial commitments do not matter unless you are considering paying off the interest on the loan.
All the plans that we recommend are approved by the equity release council and provide a ‘no negative equity guarantee’. This means that when your property is sold at market value, on the death of last survivor, if the proceeds are not enough to pay the amount due, lenders will not ask you or your beneficiaries to repay the shortfall, ensuring your financial security. This guarantee is included as standard at no additional cost.
Equity Release Eligibility Criteria
The youngest applicant must be at least 55 years old.
Only one or two homeowners can take out equity release.
You must own your property and it must be in reasonable condition.
Any outstanding mortgage on the property will need to be cleared at the same time as taking out the equity release plan.
Any family or dependents living in the property will normally be required to sign a waiver, which confirms that they will not have a right to live in the property if you pass away or move into permanent residential care.
Why choose our Equity Release advisers?
Holistic approach
We adopt a holistic approach to identify whether equity release is the best option for you and advise you appropriately.
Independent financial advisers
We offer advice on all the market lenders approved by the Equity Release Council.
Personal service
We adopt a personal approach by analysing your financial and personal situation to provide the best advice possible.
