Thinking of making some home improvements, want to buy a new car or give a loved one a house deposit? To be eligible for equity release you must be aged 55 or over with a UK property worth at least £70,000.

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

What is equity release?

Equity is the value of your home minus any secured borrowing against it. Equity release allows you to get hold of some of the value without having to move out or downsize. You can take the money you release as a lump sum, in several smaller amounts or as a combination of both. 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.

There are two types of equity release. One is a lifetime mortgage and the other is a home reversion plan. Although equity release will reduce the value of your estate, it could be the solution that's right for you.

Here's how they work:

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.

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 HUB 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.

It is important to note that, like a lifetime mortgage, a home reversion plan will reduce the value of your estate.

Exclusive Saga Products

Saga have partnered with HUB Financial Solutions Limited to bring you the Saga Equity Release Advice Service. Two of the products HUB has access to are provided by Just, and are available exclusively to users of the service.

Saga Equity Release Plan

This is a lifetime mortgage available to UK homeowners aged 55 or over, with a property value of at least £70,000. It provides you with the option of a cash facility which you can release additional cash advances at any time.

You can choose to borrow the maximum amount available to you as a one-off lump sum or you can choose to borrow a smaller amount initially and then borrow additional amounts at a later date from your pre-agreed cash facility.

You can pay some or all of the monthly interest to reduce the overall loan balance, the monthly payment option is available to those aged 80 or younger at application.

Lifetime mortgages are a type of loan secured against your home.

Saga Regular Drawdown Lifetime Mortgage

This is a new type of equity release available to people aged 60-80 with a UK property worth at least £150,000.

The Saga Regular Drawdown Lifetime Mortgage combines an initial tax-free lump sum payment with ongoing tax-free monthly payments, making it a possible option if you're looking to supplement your income in retirement.

Because interest is only charged on money as it's released, it accrues at a slower rate than a standard lifetime mortgage so there is likely to be less to repay in the future.

Lifetime mortgages are a type of loan secured against your home.

What would you do with more money?

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

HUB Financial Solutions survey October - December 18, showed Saga customers' intended purpose. Some used the money for more than one use.

Home improvements

60%

Home improvements

Go on holiday

37%

Go on holiday

Buy a new car

26%

Buy a new car

give a financial gift

24%

Give a financial gift to family

How much equity can I release?

Use our equity release calculator to see how much you could release from your home's value..

Use our calculator

HUB Financial Solutions is a company that's totally focused on finding the right financial solutions for people over the age of 55. Both Saga Personal Finance and HUB share the same beliefs that we exist to help our customers lead the life they want to lead.

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