Retiring from your job can be very stressful especially if you have not figured out how you will support your expenses.
Equity release is a favourable option for many people as it provides a reasonable financial boost. However, getting a loan against your property will always evoke questions of what will happen when you die. Additionally, it’s important to know what your loved ones need to do after you die.
Equity release gives you the option to borrow money from your property and still maintain 100% ownership of the property.
The money given is the equity that has built up on the property over the years. Most people go for a Lifetime Mortgage, Drawdown Lifetime Mortgage or Home Reversion plan.
You can read more about how equity release works here. Alternatively, here is a short video.
After the last owner of the property dies or moves to a nursing home, the beneficiaries must inform the equity release providers.
They need to show them the death certificate, and other related documents, as this is to ensure that the lenders know that they now need to deal with you with regards to repayment of the equity release mortgage.
The equity release plan typically needs to be paid within a 12 month window period. Some estates decide to put the house on sale to get the money to pay the provider. Others opt to put the house up for rent as this ensures that the provider gets a certain amount at the end of the month. However, if you are looking to sell the house then having tenants could cause some challenges.
A point to note is that the interest keeps on the building during those 12 months. If the money can’t be repaid within the 12 months, the provider talks it through with the beneficiary to come up with a new plan to be able to pay the money. Ultimately the provider is able to repossess the house if the money is not paid back.
If you had applied for joint plans when taking up an equity release plan, then your spouse will continue living in the house until they die or move to a nursing home.
When taking out the equity release, you should ensure that you indicate on your documents that you want a joint plan. If not, your spouse might be forced out of the house at an earlier stage than you may have anticipated. This can be very devastating to them to be forced out of their home and can in some circumstances lead to depression.
To ensure that your spouse is taken care of even when you are not alive, we would suggest that you do look in to the benefits of having a joint plan.
Depending on the complexity of the affairs of the person that died, there may be a need to apply for probate. In this circumstance you will probably need to engage with a probate specialist or solicitor.
In the case of a joint plan, and one spouse dies, the other partner in the agreement will continue taking responsibility for the equity release (assuming they are receiving regular payments) until they die or move to a nursing home.
You might also choose to involve the solicitor once both the partners have died.
You can also choose to get advice from a financial advisor.
A financial advisor can help you come up with a plan on how to pay the lenders money back. They can also help you find out of some benefits that can help you out with additional income to help you pay the providers money.
Most people opt for equity release as a way to sustain their livelihood.
Equity release can be very helpful if you have no other source of income. However, they do impact your inheritance after you die, as quite simply you wont have a house to pass on. This means that your family don’t get to inherit your home, which is something neither you nor the family may want.
The table below shows you some of the best equity release rates, as at December 2023, for lifetime mortgages, from some of the leading equity release providers in the UK.
These rates may have changed since this table was updated and should be taken as indicative only. There may also be other providers not listed on this table that could offer better deals. In addition, the providers and products noted below may not be right for your particular circumstances. Therefore, we strongly recommend that you speak to an equity release adviser, who will be able to provide you with information on the latest rates, that are applicable to you.
.
| Product Name | Interest Rate | Type of product | Offers |
|---|---|---|---|
| Just For You – J2.5 | 6.22% | Fixed | Free ValuationNo application fee |
| Just For You – J1 | 6.30% | Fixed | Free ValuationNo application fee |
| Premier Flexible Pearl | 6.43% | Fixed | Free Valuation |
| Premier Optional Payment Pearl | 6.43% | Fixed | Free Valuation |
| Horizon 240 Drawdown | 6.43% | Fixed | Free Valuation |
| Classic Drawdown Super Lite 2 | 6.47% | Fixed | Free Valuation |
| Horizon 260 Drawdown | 6.47% | Fixed | Free Valuation |
| Classic Elite Drawdown Super Lite 2 | 6.47% | Fixed | Free Valuation |
| Premier Flexible Pearl | 6.48% | Fixed | Free Valuation |
| Premier Optional Payment Pearl | 6.48% | Fixed | Free Valuation |
| Horizon 240 Drawdown Fee Free | 6.49% | Fixed | Free ValuationNo application fee |
| Classic Drawdown Super Lite 1 | 6.52% | Fixed | Free ValuationNo application fee |
| Premier Flexible Pearl | 6.52% | Fixed | Free Valuation |
| Premier Optional Payment Pearl | 6.52% | Fixed | Free Valuation |
| Classic Elite Drawdown Super Lite 1 | 6.52% | Fixed | Free ValuationNo application fee |
| Flexible Pearl | 6.53% | Fixed | Free Valuation |
| Optional Payment Pearl | 6.53% | Fixed | Free Valuation |
| Enhanced Lifestyle Flexible Option | 6.53% | Fixed | Free ValuationNo application fee |
| Horizon 260 Drawdown Fee Free | 6.55% | Fixed | Free ValuationNo application fee |
The equity release rates have been sourced from Equity Release Supermarket. These indicative rates and incentives may have changed since this article was last updated. Therefore, they should only be taken as a guide and we cannot guarantee their current accuracy. Please also note that we do not provide advice on or endorse any particular product listed here. The rate you are offered will depend on your individual circumstances and subject to lender approval. We recommend that you speak to an equity release advisor to see what the best options are for you.
If you take out a product with Age Partnership, we will receive a fee for introducing you to them. By contacting Age Partnership through us, the cost of any equity release product would be the same as if you had contacted them directly. The fee we received is used to help keep our site operational and to produce new content.
Call Boon Brokers on 0333 567 1607 to discuss your equity release requirements.
.
All equity release and mortgage advice is provided by Boon Brokers Limited, which is authorised and regulated by the Financial Conduct Authority (FCA). The Financial Services Register number is 973757.
If you take out a product with Boon Brokers, we will receive a fee for introducing you to them. Boon Brokers provides advice for free and without obligation. By contacting Boon Brokers through us, the cost of any equity release product would be the same as if you had contacted them directly.
The fee we receive is used to help keep this site operational and to produce new content.
Think carefully before securing other debts against your home. Your home or property may be repossessed if you do not keep up repayments on your mortgage.
In this article, we answer 22 important questions that you may have about equity release, including what it is, how it works and what the best interest rate deals are.
Equity Release is not for everyone. In this article we look at the alternative options that you can consider if you need access to money in later life to pay for care, top up your pension etc.
A lifetime mortgage is the most popular type of equity release scheme, as it’s the most flexible and versatile option. The amount you receive depends on your property value.
In recent years equity release has become a very popular option. This article looks at the pros and pitfalls of equity release and what you need to consider before taking it out.
How much you can borrow from equity release varies depending on your age and house value. In this article we look at how much you could borrow from your home.
A drawdown mortgage is a type of equity release scheme, offering greater flexibility and freedom compared with traditional plans. In this article we explain all that you need to know.
An equity release calculator will give you a good indication of what you can borrow from your home. This article explains how the calculator works and also shows you what you can receive.
One of the big concerns that people have about equity release is what happens to their home and borrowings when they die. In this article we explain everything you need to know.
A home reversion plan is primarily suited to individuals over 65 looking for a solution to their finances. This article explains all you need to know.
The adverts for Boon Brokers on this page have been signed off as a Financial Promotion by Boon Brokers Limited, to ensure that they are in compliance with Section 21 of FSMA. Boon Brokers Limited is authorised and regulated by the Financial Conduct Authority (FCA). The Financial Services Register number is 973757.
Looking for a Christmas Bargain?
Up to 60% off some items
on Amazon today
Have a look and see if you can find any deals
Unlike most equity release advisors, Boon Brokers do not charge any fees! Have a free consultation to see how they can help.
You can speak to Boon Brokers on the number below and discuss your options
0333 567 1607
Use the equity release calculator and see how much money you could receive.
You can book a call back from for an equity release specialist, who can call you when it's conveniant
All equity release advice is provided by Boon Brokers Limited, which is authorised and regulated by the Financial Conduct Authority (FCA). The Financial Services Register number is 973757.
If you take out a product with Boon Brokers, we will receive a fee for introducing you to them. Boon Brokers provides advice for free and without obligation. By contacting Boon Brokers through us, the cost of any equity release product would be the same as if you had contacted them directly.
The fee we receive is used to help keep this site operational and to produce new content.
Think carefully before securing other debts against your home. Your home or property may be repossessed if you do not keep up repayments on your mortgage.
Get FEE-FREE Equity Release Advice
