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Equity release

If you've been thinking of making some improvements to your home, had your eye on a new car or want to give a loved one a house deposit – equity release could help make it happen.


The Saga Equity Release Advice Service is provided by HUB Financial Solutions Limited.

What is equity release?

‘Equity’ is the market value of your home, less any outstanding mortgage or other debt secured against it. If you've lived in your home for a long time, you'll have probably seen local house prices rise steadily, so the amount of equity you now have could be quite substantial.

‘Equity release’ means getting some of this money out of your home and into your pocket, without having to sell up and move out. You can continue to live in your own home for the rest of your life, or until you move out permanently into long-term care.


How does it work?

The Saga Equity Release Advice Service, provided by HUB Financial Solutions Limited, gives you access to a range of carefully selected plans and providers. Your adviser will discuss the types of equity release available that are best suited to your needs and help you decide if equity release could be right for you.

To be eligible for equity release you must be 55 or over with a UK property worth at least £70,000. Minimum age, property value and property criteria vary between providers.

What do people commonly use equity release for?

         

Types of equity release

1. Lifetime mortgage

A lifetime mortgage enables you to release a tax-free cash lump sum from the value of your home.

You will continue to own your home completely and retain the right to live in it for the rest of your life.

You can choose to repay the interest each month or make no monthly payments and roll up the interest into the loan amount. The amount borrowed plus accrued interest is usually repaid from the proceeds of the sale of your property when you die or move permanently into long-term care.

It is important to note that the loan is secured against your home and a lifetime mortgage will reduce the value of your estate.

 

2. Enhanced lifetime mortgage

An enhanced lifetime mortgage could allow more cash to be released from your property than a standard lifetime mortgage. 

This is dependent on lifestyle and medical factors that are taken into consideration. 

These factors include health and lifestyle issues such as weight, blood pressure, medical conditions and whether or not you smoke. 

It is important to note that, like lifetime mortgages, the loan is secured against your home and an enhanced lifetime mortgage will reduce the value of your estate.



3. Home reversion plan

A home reversion plan involves selling part or all of your home to a home reversion provider. 

You receive the sale proceeds as cash, which can be paid as regular instalments or as a single lump sum. 

On any home reversion plan the Saga Equity Release Advice Service recommends, you retain the right to stay in your property rent-free for the rest of your life.

You will receive less than the full market value of your home, because the buyer cannot re-sell the property until you die or move permanently into long-term care.


To find out more, call us on 

0800 096 1484


Next steps

How much equity could you release?

Our free online calculator will provide an indication of the maximum amount you may be able to release. It's quick and easy to use and provides a quote based on a lifetime mortgage.


   


Want to discuss your options?

Call for more information or book a free no obligation appointment on:

0800 096 1484 

Monday – Friday 9am - 5pm. (excluding bank holidays)

Calls may be recorded and monitored.

An alternative to equity release with Saga Personal Loans

The minimum amount that can be released through equity release from your home is £10,000. If you're looking to release less than £10,000 of value, you may want to consider other options such as a personal loan.A Saga Personal Loan, provided by Shawbrook Bank Limited, offers every approved applicant a single, flat interest rate of a representative 7.9% APR. You can apply for a loan between 1-7 years, if you're aged between 50 and 75, own your own home in England, Scotland or Wales, and have an annual income of at least £12,000, which can include pensions, savings and investments. Saga Personal Finance Limited is a credit broker and not a lender.

Who are the providers and how are they regulated?

The Saga Equity Release Advice Service is provided by HUB Financial Solutions Limited who will pay us an introductory fee if you decide to take out a plan. Saga Personal Finance is a registered trading name of Saga Personal Finance Limited, which is registered in England and Wales (Company No. 3023493). Registered office: Enbrook Park, Sandgate, Folkestone, Kent CT20 3SE. Saga Personal Finance Limited and HUB Financial Solutions Limited are authorised and regulated by the Financial Conduct Authority.

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