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Saga Equity Release Plan

The Saga Equity Release Plan is a lifetime mortgage that provides flexibility and choice over how your home can provide for you. With this product, you can make equity release work the way you want it to.

Provided by Just.

What is the Saga Equity Release Plan?

The Saga Equity Release Plan, provided by Just, is a lifetime mortgage that lets you get hold of some of the value of your home as tax-free cash. This has recently been improved to give you flexibility, and a choice over how you want to take the money.

As with any financial commitment related to your home, it is a big decision. There's a lot to consider; that's why we have partnered with HUB Financial Solutions Limited to bring you the Saga Equity Release Advice Service. Your adviser could help you decide if equity release is right for you and will tell you if the Saga Equity Release Plan suits your needs.

And you’ll get £425 towards your legal fees and no set-up costs or valuation fees to pay, if you choose to take out this product through the Saga Equity Release Advice Service.

Am I eligible?

The Saga Equity Release Plan is available for customers 55 and over, with a home of standard construction in the UK worth at least £70,000. The product can provide 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.

The monthly payment option is available to those aged 80 or younger at application.

The advisers at HUB Financial Solutions Limited will make sure you fully understand how equity release could affect you and your finances as well as explain how it will reduce the value of your estate and whether it might affect your eligibility for some state benefits. If the adviser feels that equity release or the product is not right for you, they will tell you and explain why.

How it works

The Saga Equity Release Plan is a loan secured on your home, designed to be paid off from the proceeds of selling your house when you die or move permanently into long-term care. 

You can choose how you take the money:

Take a lump sum in the form of a one-off cash payment.

Access to a cash facility where you can set up a pre-arranged cash facility that gives you the flexibility to draw cash as necessary. You can enjoy your retirement safe in the knowledge you can access extra money when you want to. By taking the money as and when you need it, rather than in one payment, it’s likely that the overall amount of interest charged will be reduced.

If you select the monthly payment option you can choose to pay off the monthly interest from £25 a month, up to all of the monthly interest. Not only will this reduce the overall cost of your loan, but you’ll also receive a reduction on the roll-up interest rate. The higher the percentage of interest you choose to pay each month, the bigger reduction you’ll receive.

Interest service option

The example below shows how interest accumulates on the Saga Equity Release Plan over a 20-year period comparing roll-up interest to other interest payment options now available. It's based on a 68-year-old borrowing a lump sum of £78,000 (on a property valued at £260,000).

Saga Equity Release Plan monthly interest rate table

Do you want to find out more? Call 0800 096 7120

Is this right for me?

The only way to know if equity release is right for you is by talking to a professional equity release adviser who can give you a thorough financial review and weigh up your particular aspirations and circumstances. With the Saga Equity Release Advice Service, you won’t have to pay upfront for your review or advice, and there’s absolutely no obligation to proceed.

The Saga Equity Release Advice Service and the Saga Equity Release Plan are bound by Equity Release Council standards, which include a ‘no negative equity guarantee’ and clear codes of conduct to protect consumers.

Want to find out more? You can request our essential guide to equity release here.

Your questions answered…

How much does it cost?

There’s no fee for using the Saga Equity Release Advice Service. If your adviser thinks the Saga Equity Release Plan or the Saga Regular Drawdown Lifetime Mortgage, both provided by Just, is right for you and you choose to accept it, there are no valuation or set-up fees to pay. You’ll also receive £425 towards legal fees, which is paid to your solicitor on completion – if your legal fees come to more than this, you’ll need to pay the difference.

Other products may have set-up, valuation and legal fees, and these vary depending on the provider and the type of product you choose. With a lifetime mortgage, you can add some of the fees to your loan which could reduce upfront costs.

How much can I release?

The amount you can borrow depends upon your age and property value. The minimum lump sum you can borrow is usually £10,000 but with the monthly interest option the minimum is £20,000. The maximum you can borrow is £600,000 in England and £250,000 in Northern Ireland, Scotland and Wales.

Are all homes suitable as security for equity release?

Paying back equity release relies on your property being sold in the future. Lenders tend to prefer standard homes that can be easily resold without any refurbishment or issues that would put off prospective buyers if they need to get a mortgage. According to the Equity Release Council, these are the sort of properties that might not be eligible for equity release: studio or basement flats, flats or maisonettes in a local authority or housing authority block of more than four storeys, retirement properties, static/mobile homes, houseboats, farms, hotels and guest houses/B&Bs. There may be other types of property that do not qualify. To find out more call 0800 096 7120.

Can I stop monthly payments?

If you would like to take a temporary break from your monthly payments, you can take a payment holiday of up to three months in any 12 month period after the completion of your loan. You just need to give us at least a month’s notice. 

You can stop making monthly payments at any time by giving us a month’s notice. However, once you have stopped you can’t restart them and your loan will then change to a full roll up of interest basis for the rest of the term. The interest rate discount will no longer apply so interest will accrue at the standard rate.

What is an early repayment charge?

An early repayment charge is a charge that you may have to pay if you pay back all, or part, of your lifetime mortgage early. An early repayment is usually considered to be any time before the end of the customer’s life or before they have to move into permanent long-term care.

With the Saga Equity Release Plan, you do not have to make any monthly repayments. However, if you are not paying some or all of the monthly interest, you can choose to repay up to 10% of each advance in each 12 month period after the completion date of the advance. 

If you are borrowing jointly, you can fully repay the mortgage within three years of one of you dying or moving into permanent long-term care without early repayment charges applying.

Just has a separate guide to explain the early repayment charge in greater detail. Please speak to your equity release adviser if you would like a copy of this document.

Will it affect my state benefits?

Some benefits may be affected by the decision to release equity in your home as they are subject to means testing, such as Pension Credit, Council Tax Reduction and health benefits. 

You should make sure you have all the facts before you decide to proceed. Your specialist adviser will carry out a full state benefits review to ensure you’re claiming everything you’re entitled to and will explain whether releasing equity will affect your entitlement to means-tested benefits.

Next steps..

Are you interested in knowing more and seeing if equity release could work for you?

Call 0800 096 7120 to get your personal, no-obligation appraisal.
Monday – Friday 9am - 5pm (excluding bank holidays).
Calls will be recorded for training and regulatory purposes.

Information about Saga Personal Finance and our providers

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 product. The Saga Equity Release Plan is provided by Just. Just is a trading name of Just Retirement Money Limited. 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 is authorised and regulated by the Financial Conduct Authority.

HUB Financial Solutions Limited and Just Retirement Money Limited, both part of Just Group plc, are authorised and regulated by the Financial Conduct Authority.