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.

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 April - June 18, showed Saga customers' intended purpose. Some used the money for more than one use.

Home improvements

58%

Home improvements

Go on holiday

38%

Go on holiday

Buy a new car

23%

Buy a new car

give a financial gift

18%

Give a financial gift to family

How much can I release?

The amount you can release depends on your age and how much your home is worth. Generally, the older you are, the more you can release.

The table below shows the average amount Saga Equity Release customers released in 2017

London

£107k

South East

£56k

South West

£42k

East Midlands

£35k

Wales

£37k

John Lewis gift cards worth £100 to be won every week!

We are giving customers the chance to win John Lewis gift cards worth £100 every week simply by completing our equity release calculator. Two lucky customers will be chosen at random every week up until 30th December 2018. You can find information on draw dates and prizes, as well as details of how to enter on our Terms and Conditions page.

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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