EQUITY RELEASE
Saga Equity Release can help explain how equity release works.
What is equity release?
Equity release is a way of unlocking some of the value of your home and turning it into tax-free cash.
The most common way to release equity for those 55 and over is with a lifetime mortgage. You can also release equity through a home reversion plan – but this isn’t something Saga Equity Release offer.
How do lifetime mortgages work?
They’re similar to normal mortgages except you don’t have to pay back any money whilst you’re still living in the home. ( Although some products allow you to make monthly or ad hoc interest payments.) A lifetime mortgage is a loan secured against your home.
You still own your home. The money you borrow (and interest) is usually paid back from the sale of your property after you die, or if you move permanently into long-term care. If you have a joint lifetime mortgage with someone else it’ll stay in place until the last borrower dies or moves into permanent long-term care.
Most lifetime mortgages have a ‘no negative equity’ guarantee. That means you, or your estate, will never have to pay back more than the amount the property sells for – even if it’s less than the mortgage amount owed.
Equity release can be a useful way to access funds for later-life expenses, such as home improvements or purchasing a new car. But because of the way it works, it will reduce the value of the estate you leave your loved ones. And it could affect any means-tested state benefits you get.
So you should think carefully about whether it’s the right thing for you.
How do you qualify for equity release?
- You (or the youngest borrower if you're taking out a joint lifetime mortgage) have to be at least 55 years old
- You have to own a UK home worth at least £70,000
Other eligibility criteria may apply.
What can you use equity release for?
The money available from equity release is yours to spend on almost anything you want to. It can be used for home improvements and repairs, travel and hobbies, debt consolidation and family, simple day-to-day living expenses, and so much more.
Home improvements
Gifts to family
Finances
Holidays/Leisure
Emergency Fund
Car
Important
When using equity release for gifting, the implications for inheritance tax is one area of many that you need to carefully consider before going ahead. You should consider seeking professional advice before releasing equity. Equity release will reduce the value of your estate and may affect your entitlement to means-tested state benefits.
As part of the Saga Equity Release service, you'll have access to a UK-based qualified adviser and support team, who will advise you on your options and outline solutions tailored to your specific circumstances.
How to apply for a Saga Lifetime Mortgage
1. Find out if equity release is right for you
The Saga Equity Release team will introduce you to the service and check you’re eligible. If you're eligible and you would like to go ahead, the team will set up a meeting with an adviser who can:
- Explore alternatives to equity release that might suit you better.
- Check your eligibility for state benefits to ensure you're getting everything you're entitled to.
- Discuss your needs and put together a recommendation report for you.
Saga Equity Release is a no-obligation, no-pressure service. You will need to pay an advice fee of £799 if you decide to take out a Saga Lifetime Mortgage.
2. Apply for your product
Your adviser will talk you through the Saga Lifetime Mortgage’s flexible options and features. Together, you can put together a product that’s tailored to your needs. If you're happy with it and want to proceed, they'll help you apply.
3. Get your tax-free money
Once Just have accepted your application, they'll aim to put the money in your solicitor’s account within 40 working days. You can then spend it how you wish on almost whatever you want. Find out more in the terms and conditions.
Want to know how much you could release?
Use Saga's FREE lifetime mortgage calculator to get an instant estimate of just how much cash you could release from your property.
Fancy a free equity release guide?
The team at Saga Equity Release have written a guide to help you decide whether equity release is right for you. Request yours now.
Myth busting equity release
- It’s unregulated: Equity release providers that are members of the Equity Release Council must adhere to certain standards. Find out more about how these standards safeguard you. Equity Release products and advice are regulated by the Financial Conduct Authority
- I can’t release equity if I already have a mortgage: You absolutely can, although it does depend on how much you have left to repay and how much you can borrow. And you will have to pay off your existing mortgage when you take out a lifetime mortgage. Using a lifetime mortgage to repay this could cost more in the long-term.
- I could be forced to move out of my home: You'll never be made to move out of your home. In fact, with a lifetime mortgage, you have the right to stay in your property until you or the last borrower dies or goes into long-term care (as long as you stick to the terms and conditions of your lifetime mortgage).
- I’ll leave my family in debt: Your beneficiaries will never have to pay back more than your home sells for, even if it’s less than the amount owed on the mortgage. As long as all the terms and conditions are met.
- I can't move house: You’re free to sell your property and move to another, as long as the new one meets the provider's lending criteria for the lifetime mortgage.
Why choose Saga Equity Release?
At Saga, we’ve been fulfilling the personal finance needs of the over 50s for more than 20 years, so we know our customers expect excellent service as well as high-quality products.
That’s why we’ve chosen HUB Financial Solutions Limited to provide Saga Equity Release – a no-obligation, no-pressure service dedicated to finding out if equity release is right for you.
The product available through Saga Equity Release is the Saga Lifetime Mortgage, which is available exclusively through this service.
Ready when you are
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.
Mon-Thu 9am - 6pm
Fri 9am - 5:30pm
Sat Closed
Sun Closed
Excluding bank holidays
Equity Release Council
Saga Equity Release and HUB Financial Solutions Limited are members of the Equity Release Council. This industry body ensures that all equity release products are safe and suitable for customers.
Saga Equity Release
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 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.
More from Saga Equity Release
There's plenty to explore and learn about equity release.
Exclusive Saga product
Our lifetime mortgage, the Saga Lifetime Mortgage, is provided by Just and is exclusively available through Saga Equity Release.
Pros and cons of equity release
Is equity release the best way to free up tax-free cash in your home?
Frequently asked questions
Common questions and their answers that should help you decide whether equity release could be the right choice for you.
Equity release articles
Considering equity release should involve as much wider reading as possible, here are some articles we hope you find useful.
Important information
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.
