What is equity release?
Put simply, equity release allows you to release some of the cash stored up in your property without needing to move.
How much equity you can release depends on how much your property is worth, how old you are and how much you choose to borrow. The money you release is usually paid back when you, or the last remaining borrower, dies or if you move permanently into long-term care.
The money you release from your property is tax-free and you can spend it on whatever you choose: for example, clearing your mortgage or credit cards, gifting to your family, or making home and garden improvements.
You may have heard some equity release schemes described as ‘Home Reversions’ or ‘Lifetime Mortgages’. These are two different types of regulated equity release schemes, and we offer Lifetime Mortgages.
Lifetime Mortgages allow you to release money from your property. You continue to own the property and it will never be repossessed (as long as you abide by the terms and conditions of the loan).
Is equity release regulated?
Yes. Retirement Advantage is authorised and regulated by the Financial Conduct Authority (FCA).
However, our Over 55 Buy-to-Let Options may not be regulated by the FCA. There are two types of mortgages for Buy-to-Let properties, 'Buy-to-Let' (which is not regulated by the FCA and 'Consumer Buy-to-Let' (which is). We offer mortgages for either scenario. For more information, please speak to your financial adviser.
We are also a member of the Equity Release Council. Members adhere to a strict code of practice and guarantee that customers are offered products and services which conform to the best practices of the sector. The Council also ensures that customers are fully informed and increasingly protected.
Please note, our Over 55 Buy-to-Let Options and Second Home Options do not meet all of the product standards, because they are not secured on the borrowers’ main residence. You can read more about the safeguards on these products here.
Am I eligible?
As with most lending products, there are several key requirements that you will need to meet to be eligible. The most basic requirements are:
- You must be aged between 55 and 90,
- You must own your property,
- You must be a UK resident.
The other requirements are related to your personal circumstances and your property. Your financial adviser will be able to talk to you about these in more detail.
Our Guide to Equity Release
Our customer brochure provides an overview of equity release and explains the main features of lifetime mortgages, and how these can benefit you if you are in, or approaching, retirement.
Planning for retirement?
Our Retirement Planning help and guidance section has everything you need to help you plan for your future.
A Guide to Our Buy-to-Let Products
This brochure gives an overview of the products available for Buy-to-Let properties, which can help you to use your property to your advantage.
Our new report, Home Truths, highlights the limitations of relying on pensions savings alone. It sets out three simple steps to help you think more broadly about your wealth so that you can make the most of your retirement.
If you would like hard copies of our literature, you can order them for free using our document request form.