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Reigate Mortgage Solutions Modern Living Room

Equity Release

About Equity Release

Equity release mortgages are designed for people over the age of 55 who are looking to turn some of the equity in their property in to cash. They are generally people who are asset rich but cash poor. We specialise in Equity Release mortgages in Surrey and throughout the UK.

The main reasons for wanting to release equity are for additional retirement income, home improvements, a new car, a holiday, pay for private medical treatment (avoiding NHS queues) or to repay existing debts. Whatever the reason releasing cash from your home could make a big difference to your quality of life.

Depending on your circumstances and the particular product the monies can either be released as a one off lump sum or as smaller regular lump sums.

 

Why Reigate Mortgage Solutions

Reigate Mortgage Solutions have a qualified adviser in Surrey who will search dozens of providers to ensure you choose the most suitable product that best matches your Equity Release needs. Most of the providers are members of the Equity release council which superseded SHIP (Safe Home Income Plan). SHIP has been incorporated as part of the Equity Release Council in the form of the standards board. The standards board exists to ensure that equity release products are safe and reliable for consumers.

We will listen to your requirements and suggest alternatives before recommending an equity release mortgage. 

 

Costs

Valuation fee – The provider will need to survey your property to determine the value of your home. Depending on the provider you should allow £200 on a property valued at £200 000.

Solicitor Fee – You need to instruct a solicitor to provide Independent Legal Advice and to carry out the conveyancing for the transaction. You should allow £600 to cover these costs.

Advice Fee – This is paid to the adviser to cover the cost of providing their advice and expertise to research the market in order to find the most suitable product.

The adviser will always prepare and present a personalised report detailing why it is the most suitable product.
The fee is £700 of which half is usually required once an application is submitted and the other half is payable on completion.

Advisers dealing in the equity release market must be qualified and authorised by the Financial Conduct Authority. They must be a competent individual who has passed the ‘Certificate in Regulated Equity Release Paper’ or its equivalent.

 

Involving Family

Where possible we always recommend consulting your family before entering in to an Equity Release Mortgage as it may affect their potential inheritance.

Research has found that three quarters of grown up children would be happy to give up their inheritance so that their parents could make most of their retirement years but it is something you should talk through so that all parties are in agreement.

 

Your Safeguards

Financial Conduct Authority –  Lifetime mortgages are regulated by the Financial Conduct Authority in the U.K. Regulated Equity release products have to meet the strict standards set out by the FCA.

Equity Release Council - This is the industry body for the equity release sector. Born from an expansion of the remit of SHIP (formerly Safe Home Income Plans) the equity release council represents the providers, qualified financial advisers, lawyers, intermediaries and surveyors who work in the equity release sector. 

A major focus of the Equity Release Council's work is to ensure products are safe and accessible for consumers. Each member of the council that provides equity release products is signed up to the Equity Release Council's code of conduct which puts in place a number of safeguards and guarantess for consumers. This means people who use equity release products offered by the members of the Equity Release Council can have confidence in the products they use and the information they receive. On top of this all members abide by the overarching principles of the council.

The Council. which incorporates the SHIP Standards Board continues SHIP's aims of protecting the customer and works to increase knowledge to help customers make informed decisions.

SHIP's code of conduct –  SHIP has set out a code of practice which providers and advisers adhere to.

  • The adviser/plan provider must provide a fair and simple explanation of the plans.
  • To clearly state the main cost to the householder's assets and estate.
  • To carry a no negative equity guarantee (you will never owe more than your home)
  • The customers legal work will always be carried out by the solicitor of their choice.
  • A right to remain  in  in your home until death or entry into full time nursing care as long as it is your main residence
  • Customers have the right to move their plan to another suitable property without any financial penalty

What to do next – contact us

For more information please contact us by either calling us on 01737 222353 or email us at enquiries@reigatemortgagesolutions.co.uk.

 

Equity release includes Lifetime Mortgages and Home Reversion schemes. We can advise and arrange Lifetime mortgages and will refer to an approved specialist for Home Reversion schemes.

 

Lifetime mortgages are not suitable for everyone. The value of your estate will be reduced and certain state benefits may be affected. We will take this into account when advising you.