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PrimeGlobal member Simmons Gainsford discusses equity release mortgages.
We are all living in uncertain economic times, leaving many worried for their financial future, so now may be the time to release money from your home, tax-free, to secure your lifestyle, protect your business, or help family members struggling in the current financial climate.
This is not a decision that should be taken lightly or without expert advice and consultation with the family is also a key consideration.
Earlier this month it was revealed that equity release mortgages were offering their lowest rates in history, and SG Financial Services have access to the most competitive market rate of 2.55%.
How can Equity Release benefit you?
- Avoid significant losses from selling stocks and shares during a market dip.
- Help family members who have fallen on hard times with a lump sum to gift or lend.
- Mortgage holiday alternative, which would need to be paid back by extending/increasing.
- Peace of mind. Ease stress by having a cash sum on hand in case of emergency.
- Provide a temporary regular income if yours has been affected.
- Support your small business with a cash injection without resorting to a loan.
The most popular way to release equity from your property is through a lifetime mortgage, and our qualified equity release advisers are here to help you decide if equity release is the right choice for you.
We offer free, impartial, no obligation advice, with access to a wide range of products across the market. During the Coronavirus pandemic, this advice can be provided via phone or video call.
Frequently Asked Questions
How do I receive the money?
The tax-free equity released can either be paid to you as a lump sum or a series of smaller amounts. You will only pay interest on the portion that is withdrawn.
Will I have to make monthly repayments?
No. Most lifetime mortgages delay the repayment of the loan and interest accrued until you pass away or enter full-time care. Alternatively, you can choose to make monthly payments on the interest or ad hoc payments on the capital to avoid it building up.
Will I still own and live in my home?
Yes, with the plans we have access to you will still own your property and can remain living in it until you pass away or enter full-time care.
What happens when I pass away?
Your home will be sold once you and your partner have died or entered full-time care. The proceeds will first be used to pay off the loan, and any remaining money will go to you or your estate.
Can I still leave an inheritance for my family?
Yes, many plans include an inheritance protection guarantee, which allows you to set aside a percentage of the future value of your home to pass on to beneficiaries in your will.
Will I ever fall into negative equity?
No, all we recommend are approved by the Equity Release Council and come with the no negative equity guarantee, meaning you will never owe more than your home is worth.
Can I take out equity release if I still have a mortgage?
Yes however, you will need to immediately repay the existing mortgage using the money released, and any remaining funds will be yours to spend as you like.
Can I move house?
Yes, several plans offer the flexibility to downsize however, in order for the loan to be portable the new property has to be acceptable to the lender. If you have to repay part of the loan you will not incur an early repayment charge.
How long will the process take?
In most cases SG Financial Services complete the process within six weeks from the original client meeting to the funds being transferred. This includes your adviser presenting your options, completing the application with you and sending off the application, the lender underwriting the plan, the evaluation of your property (currently via desktop or drive by, due to Coronavirus), the offer being presented to your solicitor and you signing the paperwork.
Simmons Gainsford LLP
We provide a comprehensive range of services specifically tailored to the needs of individuals and businesses seeking financial success and security. We consider ourselves trusted advisors with entrepreneurial flair. With 12 partners and over 100 staff within the group we are able to draw on a wide range of expertise whilst maintaining a high level of personal contact with our clients who range from owner managed businesses to PLCs and High Net Worth Individuals.Learn more