Types of equity release
For more information call the Saga Equity Release Advice Service on 0800 096 7120. Lines are open 9am to 5pm, Monday to Friday (excluding bank holidays). The Saga Equity Release Advice Service is provided by HUB Financial Solutions Limited.
Types of equity release
There are two main ways to access the value in your home: you could either take out a lifetime mortgage – a long-term loan secured against your home – or choose to sell all or part of your property using a home reversion plan.
A lifetime mortgage enables you to release a tax-free cash lump sum from the value of your home. You will still own your home and can continue to live there for as long as you like.
What is a lifetime mortgage?
Much like a traditional mortgage, a lifetime mortgage is a loan secured against your home, which accrues interest each month. The difference is that you don’t have to make monthly repayments. Instead, compound interest is added to the loan amount to be repaid from the proceeds of the sale of your property when the last person named on the agreement and living there dies or moves permanently into long-term care. This will affect the value of your estate.
Is there a choice of equity release plans?
There are a number of products available through the Saga Equity Release Advice Service from a range of providers and the adviser will recommend a product that is right for you. This includes two exclusive lifetime mortgage plans, provided by Just. With the Saga Equity Release Plan, you can choose to take a one-off lump sum or a number of small amounts, and you can also choose to pay some or all of the interest each month. The Saga Regular Drawdown Lifetime Mortgage combines an initial lump sum payment with ongoing monthly payouts that could help supplement your income in retirement.
It may be possible to release more equity with an ‘enhanced’ lifetime mortgage, depending on a number of lifestyle and medical factors, such as weight, blood pressure, health conditions and whether or not you smoke.
Find out how much money you could release with a lifetime mortgage by using our equity release calculator. Please note that your entitlement to means-tested state benefits could be affected if you release equity – an adviser from the Saga Equity Release Advice Service can check this for you.
Call the team on 0800 096 7120. Lines are open Monday to Friday, 9am to 5pm (excluding bank holidays). Alternatively, you can request a callback from one of the team.
Home reversion plan
With a home reversion plan you sell part or all of your home to a provider and receive the proceeds of the sale in cash, as either a single lump sum or regular instalments.
Will I still be able to stay in my home?
Any home reversion plan recommended by the Saga Equity Release Advice Service will include the right to stay in your home rent free for the rest of your life. Unlocking cash in this way could affect any means-tested benefits you receive, and our advisers will check that for you before recommending a plan.
How much will I get for my property?
It’s important to note that whether you sell a proportion or the whole of your property to a home reversion company, you won’t receive the full market value. This is because they will not be able to re-sell the property while you’re still living there, and they will want to avoid any potential loss in value during the time you remain in the house.
When you die or move permanently into long-term care, the property will be sold and the estate will be reduced by the proportion of the property’s value that is repaid to the provider.
To find out more about lifetime mortgages and home reversion plans, call the Saga Equity Release Advice Service on 0800 096 7120. Alternatively, you can request a callback from one of the team.
Lines are open Monday to Friday, 9am-5pm (excluding bank holidays).
There’s no fee for the initial consultation with an equity release adviser. However, if you choose to proceed with a recommended product, an advice fee of £750 will be payable on completion. This fee will be waived if you're a Saga customer who has signed up to Possibilities. Please refer to our Important information to find out more about the service and fees.