Equity release can be used by homeowners over 55 years old to unlock the cash in their property. However, it’s a complex financial product, and getting the right advice is essential. Asking the right questions ensures you understand the risks, benefits, and long-term impact is essential.

Here’s a guide to the top 10 questions to ask your equity release advisor before making any decisions.

What Type of Equity Release Is Right for Me?

There are two main types:

• Lifetime Mortgages – Borrow a lump sum or income while staying in your home; interest can roll up or be paid monthly.
• Home Reversion Plans – Sell a portion of your property to a provider while retaining the right to live there rent-free.

How Much Can I Borrow?

The amount you can release depends on:

• Your age
• Property value
• Health considerations
• Type of equity release product

What Are the Interest Rates and Fees?

Ask your advisor about:

• Arrangement and valuation fees
• Legal costs
• How interest accrues over time – interest roll up
• Any potential early repayment charges

How Will This Impact My Inheritance?

Equity release reduces the value of your estate. Discuss the impact on your family and beneficiaries with your advisor. Involve your family members in the process. Strategies like drawdown options can help preserve inheritance.

Will I Still Own My Home?

• With lifetime mortgages, you retain ownership of your home.
• With home reversion plans, you sell a percentage of your property.

Can I Move Home in the Future?

Some equity release lenders will have restrictions or early repayment penalties if you move. Some lenders will allow you to ‘port’ your mortgage to a new property, but this is subject to the lender accepting the new property and assessing any Loan to Value restrictions or changes.

How Does Equity Release Affect Benefits and Tax?

• Large lump sums may impact means-tested benefits.
• Some plans may have tax implications.
• Discussing this with a Financial Advisor is a great way to understand this impact.

Are There Any Risks I Should Know About?

• Interest can compound over time, increasing the amount owed.
• Property value changes can affect future options.
• Understand all potential financial risks.

Can I Make Partial Withdrawals or Repay Early?

Some lifetime mortgages allow drawdowns, letting you release funds gradually. Others may let you make voluntary repayments to reduce interest.

Is This the Best Option for My Circumstances?

Your advisor will help you compare alternatives, such as downsizing, pensions, or other financial products and investments, to ensure equity release is the most suitable solution.

Why Speak to a Specialist Equity Release Advisor?

A specialist equity release broker can:

• Access multiple lenders and products
• Provide unbiased advice tailored to your situation
• Help you understand legal and financial implications
• Ensure you make an informed decision that aligns with your retirement goals

If you live in Plymouth, Torbay, Exeter, Saltash or across Devon & Cornwall, contact me  for a free no obligation chat.

Alternatively follow the link below to the Equity Release web page at Stuart Ash Mortgage Services where you can complete a contact form.

Equity Release Advice – Stuart Ash – Mortgage Services

Stuart Ash Mortgage Services are proud members of the Equity Release Council

Stuart Ash – Equity Release Council

‘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