Equity Release
Exploring equity release? We’ll guide you through the ins and outs, helping you make informed decisions that suit your needs.
If you’re 55 or older and own a home, you can release some of the equity in your property. There are a number of options which may or may not involve dealing with monthly payments. How you use the capital you release is your choice; for example, you can fund home improvements, holidays, or a relaxed retirement. However, it’s essential to grasp the long-term impact. At Evolution Private Finance, our experienced financial professionals work closely with our strategic partners to guide you through this process, ensuring you borrow only what’s necessary and providing a clear understanding of the product’s risks and benefits tailored to your unique situation.
There are three primary methods of equity release:
Retirement Interest Only Mortgage (RIO)
- The Retirement Interest Only (RIO) mortgage allows you to access cash as a lump sum, in instalments, or a combination of the two, with the flexibility to repay interest monthly or let allow it to accumulate until the end of the mortgage term. Allowing the interest to accumulate means you will repay, at the end of the term, both the capital borrowed and the accrued interest.
The Lifetime Mortgage
- A lifetime mortgage, a type of equity release, allows homeowners aged 55 or over to access tax-free cash without moving. It provides flexibility in taking the money as lump sums, in instalments, or a combination of the two. Repayment is deferred until death, the sale of the property or permanent relocation to long-term care.
The Home Reversion Plan
- On the other hand, the home reversion plan involves selling 25% to 100% of your home, with repayment occurring from the sale proceeds after your demise or when you move into long-term care. Evolution Private Finance does not offer Home Revesion Plans, although we may be able to facilitate an introduction to our strategic partners
Most UK equity release products, regulated by the Equity Release Council, come with a No Negative Equity Guarantee. This ensures that you won’t owe more than the value of your home, providing peace of mind and financial security.
Please note:
Your home may be repossessed if you do not keep up repayments on your mortgage.
A lifetime mortgage is a long-term commitment which could accumulate interest and is secured against your home. Equity release is not right for everyone and may reduce the value of your estate.
You may have to pay an early repayment charge to your existing lender if you remortgage.
Typically, we charge a fee for arranging a mortgage; however, the actual fee will depend on your circumstances, a portion of the fee is payable on application, the remainder is payable on completion of your mortgage but will not exceed 1% of the mortgage amount.
The Retirement Interest Only Mortgage (RIO Mortgage) is designed for individuals aged 55 or over, providing a means to secure a loan against their home to release capital or repay an existing traditional mortgage. With a RIO mortgage, you make monthly interest payments, as these repayments cover only the interest due to the lender, the outstanding mortgage amount remains constant and does not reduce, unless you elect to make capital repayments to the loan.
Repayment is deferred until death or permanent relocation to long-term care. Eligibility requires being 55 or older and residing in or buying a home in England, Wales, or mainland Scotland.
The loan amount available, up to a maximum of 60% of the property value, is determined by an affordability assessment. Evolution Private Finance and our strategic partners will help ensure you secure the very best deal based on your needs and circumstances.
RIO mortgages are versatile, and suitable for various purposes, including repaying existing mortgages or financing home improvements. With fixed interest rates and the option to make overpayments, it may help ensure financial stability in retirement without a fixed date for repayment of the mortgage. Whether you need to repay an existing mortgage or you would like to support your family, the Retirement Interest Only Mortgage provides flexibility and peace of mind.
Please note:
Your home may be repossessed if you do not keep up repayments on your mortgage.
A lifetime mortgage is a long-term commitment which could accumulate interest and is secured against your home. Equity release is not right for everyone and may reduce the value of your estate.
You may have to pay an early repayment charge to your existing lender if you remortgage.
Typically, we charge a fee for arranging a mortgage; however, the actual fee will depend on your circumstances, a portion of the fee is payable on application, the remainder is payable on completion of your mortgage but will not exceed 1% of the mortgage amount.
A lifetime mortgage, a type of equity release, allows homeowners aged 55 or over (50 for our Payment Term Lifetime Mortgage) to access tax-free cash without moving. It provides flexibility in taking the money as lump sums, and repayment is deferred until death or permanent relocation to long-term care. Opting to pay monthly interest may reduce the overall mortgage amount. Whether settling an existing mortgage, funding home improvements, or assisting family, a lifetime mortgage offers a versatile financial solution.
Age Requirement: You should be aged 55 or over.
Home Ownership: Own (or be in the process of buying) your home, with minimal or no outstanding mortgage.
Property Value: Your home should be valued at least £70,000 or £100,000, depending on your property type.
Our lifetime mortgage specialist partners at Evolution Private Finance are available to address any questions you may have. Give us a call today for tailored guidance, or share your contact number for a prompt callback.
Please note:
Your home may be repossessed if you do not keep up repayments on your mortgage.
A lifetime mortgage is a long-term commitment which could accumulate interest and is secured against your home. Equity release is not right for everyone and may reduce the value of your estate.
You may have to pay an early repayment charge to your existing lender if you remortgage.
Typically, we charge a fee for arranging a mortgage; however, the actual fee will depend on your circumstances, a portion of the fee is payable on application, the remainder is payable on completion of your mortgage but will not exceed 1% of the mortgage amount.
A Home Reversion plan is typically available for those aged 65 or older; it enables homeowners to sell between 25% and 100% of their property while retaining the right to live in it. This arrangement is akin to becoming a tenant in your former home, possibly involving rent payments to the provider. However, it’s crucial to note that this may impact means-tested benefits, and if the sale occurs at less than the property’s market value, this may potentially reduce the inheritance for loved ones.
When opting for a Home Reversion scheme, the provider takes ownership of the share they’ve acquired and pays the homeowner as agreed. Some plans offer portability, allowing a change of residence. Notably, the provider only receives their share’s value after the entire property is sold, typically upon the homeowner’s death or move into long-term care. Age or poor health at the initiation of the plan may lead to more favourable terms, considering a potentially shorter period of occupancy.
At Evolution Private Finance, we have chosen not to offer Home Reversion Schemes to our clients. Should you wish to discuss this further, we have connections with specialist business partners who excel in providing equity release solutions. They offer personalised advice to help ensure your financial security in later life. Explore their dedicated services and let us guide you in unlocking the full potential of your property’s value, tailored precisely to meet your unique needs.
Please note:
Your home may be repossessed if you do not keep up repayments on your mortgage.
A lifetime mortgage is a long-term commitment which could accumulate interest and is secured against your home. Equity release is not right for everyone and may reduce the value of your estate.
Typically, we charge a fee for arranging a mortgage; however, the actual fee will depend on your circumstances, a portion of the fee is payable on application, the remainder is payable on completion of your mortgage but will not exceed 1% of the mortgage amount.