Is equity release right for me?

Get expert advice from a Saga Equity Release adviser

Choosing equity release is a big commitment, and you’ll need all the information you can get to make sure you make the right choice. We’re here to help with Saga Equity Release, an advice service provided by HUB Financial Solutions Limited. It's designed to help you come to the right decision for you.

Are you eligible for equity release?

Firstly, if you’re considering equity release, then you’ll need to make sure you meet the minimum criteria in order to qualify:

• You must be 55 or over, or the youngest borrower being 55 or over on a joint arrangement
• You must own a home in the UK
• Your home must be worth at least £70,000

There may be further criteria and differences between providers that may affect your eligibility for equity release.

How can Saga Equity Release help you make the right choice?

Saga Equity Release is an excellent resource whether you’re reading about equity release for the first time, have used our free calculator to see how much you could release and want to know a bit more, or are keen to explore product options. If you’re just starting to think about equity release, or you’re at the point of making a decision, you’ve certainly come to the right place.

The Saga Equity Release team will make sure you take all the time you need and help you work out what’s right for you. You won’t be put under pressure, and there’s no obligation to proceed with equity release when you get advice. A lifetime mortgage is a loan secured against your home. It will reduce the amount of inheritance you leave and may affect your tax position.

Five steps to work out if equity release is for you

Saga Equity Release have helped thousands of people decide if equity release will help them meet their financial goals. From first contact to completing the process, Saga Equity Release will share their expert knowledge and support you all the way.

Step 1 – Your first contact with the service

When you phone the Saga Equity Release team for the first time, they’ll answer any initial questions, check you meet the minimum eligibility criteria and will arrange to have a copy of our guide sent to you.

You can ask for a follow-up call when you’ve had a chance to think about things, or you can arrange an appointment with a specialist equity release adviser at a time to suit you.

Step 2 – Speak to a specialist equity release adviser

The aim of this initial chat is to identify your goals, your current situation, and whether equity release could be a suitable solution for you.

Your adviser will make sure you understand equity release and how it will reduce the value of your estate and if, following this meeting, your adviser finds equity release isn’t right for you, they’ll explain why.

You’re welcome to have a friend or family member with you during these discussions with Saga Equity Release, as it’s often easier to take things in and work things through if you aren’t on your own.

Step 3 – Make a plan with a financial assessment

If your adviser thinks that equity release is a good option for you, and you’d like to know more to help you decide whether to proceed, they’ll put together a financial assessment for you, including a state benefits check, along with their recommendation.

You’re not committing to anything at this point, but you’ll have a very firm idea of what will happen if you do want to go ahead.

When you’ve had chance to go through the financial assessment, your Saga Equity Release adviser will contact you to arrange another appointment.

Step 4 – Put your plan into action

At your second appointment, your Saga Equity Release adviser will discuss the results of your state benefits check and talk you through their recommendation. The product available, the Saga Lifetime Mortgage is provided by Just. A lifetime mortgage is a loan secured against your home.

The Saga Lifetime Mortgage comes with a range of flexible options, exclusive features and can be tailored to meet your individual circumstances. If you’re happy to proceed at this stage, your adviser can help you complete the paperwork. You'll need to pay an advice fee of £799.

Step 5 – Complete the process

Following a valuation of your property, the offer documents will be issued to you. You’ll need a solicitor to complete the paperwork, like you would with a traditional mortgage. Your Saga Equity Release adviser can recommend a suitable solicitor if you don’t have your own.

What does the Saga Lifetime Mortgage offer?

With the Saga Lifetime Mortgage, you can choose to borrow the maximum amount of equity available as a one-off lump sum, or as a smaller amount initially followed by additional amounts at later dates from a pre-agreed limit. It comes with these extras:

Saga Service Promise: Saga Equity Release aim to release your money to your solicitor's account within 40 working days of your application being received and accepted by Just. If this doesn't happen, you'll receive £100. This promise will not apply if you’re using the Saga Lifetime Mortgage to purchase a new property, rather than re-mortgaging an existing one. For the full details and eligibility criteria, see our terms and conditions page.

Money Back Guarantee: If you no longer need the money, you can pay back what you borrow within six months of the completion date of your initial advance. You won’t need to pay any interest or any early repayment charges – you just pay the money back and walk away. To be eligible for this guarantee your initial advance must not exceed £150,000. There are other eligibility terms that you need to be aware of and you can find all of these on our terms and conditions page.

What are the alternatives?

To make sure equity release is right for you, the following questions can help you decide if any alternative ways to raise cash can meet your needs:

• Could you downsize? Selling your property and moving to a smaller one or in a lower-cost area might be an option if you don’t mind the upheaval that comes with moving.
• Could you remortgage? Providers have age and income limits which will decide whether you would be eligible or not. If you were unable to keep up regular repayments then your home could be at risk of being repossessed. Find out more about remortgaging to release equity.
• Are you eligible for a local authority grant? If you want to use the cash for home improvements or repairs then some local authorities make grants available, so it’s worth checking this avenue first.
• Could you borrow money from somewhere else? Have you thought about asking for help from family or friends or getting a bank loan?
• Could you rent out a room? If you have the space available, this might be a way of securing a regular income to help with your living expenses.

What else should you consider?

It’s also important to think about what impact equity release may have on your finances or your future plans. You may want to consider:

• Would taking out equity release affect your benefits? If you receive a lump sum in cash or even if you take out smaller amounts of equity over a longer period of time, your eligibility for some state benefits might be affected. If you rely on this money to keep your bills down, you need to think carefully about whether you could afford to lose this income.
• What about inheritance tax? If you take out equity release the value of your estate will be reduced and you’ll have less to leave behind for your family and friends. It could affect the amount of inheritance tax your estate may need to pay, so you’ll need good financial advice to help you weigh up the benefits and disadvantages of this.
• What if you want to move home later? A lifetime mortgage can be transferred to a new home, as long as the new property meets your lender’s criteria.
• What happens to your partner when you die or move into long-term care? If you have a joint equity release agreement, this comes to an end only when the last borrower dies or moves into long-term care. That means you can both continue to live in your own home until then.
• What happens when you die or move into long-term care if you're the sole borrower? With a lifetime mortgage, the executor of your estate will arrange for the home to be sold to pay back the equity release provider, and any other associated charges.

Please refer to our Important information to find out more about the service and fees.