If equity release sounds like a good option for you, the next step is to understand the two different types and decide which one will suit you best.
There are two types of equity release that allow you to access the value in your home:
Much like a traditional mortgage, a lifetime mortgage is a loan secured against your home which accumulates interest each month.
The difference is that with a lifetime mortgage you don’t make monthly repayments. Instead, the interest is compounded – that means you’ll pay interest on the interest (unless you decide to make full monthly interest payments).
The mortgage ends when you, or the last borrower if you’ve taken out a joint mortgage, die or move into permanent long-term care. The loan and interest are then paid back from the sale of your property. Because of this, lifetime mortgages will reduce the value of the estate you leave behind.
Saga Equity Release, provided by HUB Financial Solutions Limited, is a no-obligation, no-pressure service dedicated to finding out if equity release is right for you. You’ll need to pay an advice fee of £799 if you decide to proceed and take out a Saga Lifetime Mortgage. It's provided by Just and has a range of flexible options. For example:
Use Saga's FREE lifetime mortgage calculator to get an instant estimate of just how much cash you could release from your property.
The team at Saga Equity Release can help you decide whether equity release is right for you. Arrange a call back at a time that suits you.
With a home reversion plan you sell part or all of your home to a provider in return for a cash lump sum or regular payments. You then stay in your home rent-free for the rest of your life.
Home reversion plans are much less popular than lifetime mortgages, and aren’t something Saga Equity Release offer.
With both types of plan, you stay in your home until you (or the last borrower if you have a joint mortgage/plan), dies or goes into permanent long-term care. The main difference is who owns your home.
Start by talking to a financial adviser to make sure you understand the pros and cons of the two different types. Equity release in either form could also affect any means-tested benefits you get, so you should check this too before deciding to go ahead.
The Saga Equity Release service includes a check to see if releasing equity could affect any benefits you currently receive. Your adviser will also explore the alternatives to equity release. You will need to be 55 years old or over and own a UK property worth at least £70,000.
Saga Equity Release, HUB Financial Solutions Limited and Just Group plc are members of the Equity Release Council. This industry body ensures that all equity release products are safe and suitable for customers.
As members of the council, both Saga Equity Release and HUB Financial Solutions Limited follow its strict Statement of Principles that protect customers at every stage of the equity release journey. Find out more about the Equity Release Council.
Saga Equity Release is provided by HUB Financial Solutions Limited, who will pay us an introductory fee if you go ahead with equity release using the service. HUB Financial Solutions Limited, part of the Just Group plc, is authorised and regulated by the Financial Conduct Authority. You can find out more about the service and fees on the Important information page.
There's plenty to explore and learn about equity release.
Our lifetime mortgage, the Saga Lifetime Mortgage, is provided by Just and is exclusively available through Saga Equity Release.
Is equity release the best way to free up tax-free cash in your home?
Common questions and their answers that should help you decide whether equity release could be the right choice for you.
Considering equity release should involve as much wider reading as possible, here are some articles we hope you find useful.
For more information call the Saga Equity Release team today to help you find out whether equity release could help you. Saga Equity Release is provided by HUB Financial Solutions Limited.
Saga Equity Release is provided by HUB Financial Solutions Limited.