couple looking at there new conservatory they built using equity release

Equity release

If you are a UK homeowner aged 55 or over, the Saga Equity Release Advice Service, provided by HUB Financial Solutions, may be able to help you access money tied up in your home.

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 permanently into long-term care.

Is equity release right for me?

If you're thinking about equity release, it's a big decision that needs careful consideration as it will reduce the value of your estate and may affect your state benefit entitlement 

You adviser wants to help you make the right decision and see whether equity release is the right choice for you - and they will certainly tell you if it isn't.

They will answer any questions you have and will also cover the following:

Alternative ways to access the money you need
That outstanding mortgages need to be repaid upon completion of taking out a product
Using current savings or investments instead of equity release
Making sure you're claiming all the state benefits you are entitled to.

How we can help

The Saga Equity Release Advice Service, provided by HUB Financial Solutions Limited, gives you access to a range of carefully selected products and providers. Your adviser will discuss the types of equity release products 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.

Exclusive to Saga

We’ve developed two equity release solutions, provided by Just, exclusively for Saga Equity Release Advice Service customers. The Saga Equity Release Plan has been recently improved to offer more flexibility and features. The Saga Regular Drawdown Lifetime Mortgage is a type of lifetime mortgage that provides a monthly cash sum to supplement your income in retirement, so you can keep doing the things that matter to you most. 

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 one of the exclusive products through the Saga Equity Release Advice Service.

1. Saga Equity Release Plan

This product is a lifetime mortgage, the more common form of equity release. To be eligible for this type of equity release you must be 55 or over with a UK property worth at least £70,000. If you have chosen to pay all or some of the monthly interest, the maximum age at application is 80 years old.

The recent improvements to this product include:

Minimum age reduced to 55 from 60
Option to reduce overall loan cost with monthly interest payments
Interest rate reductions for customers who choose to pay some or all of the monthly interest from the roll-up rate
Drawdown option open to all customers if funds are available
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.

It is important to note that the loan is secured against your home. 

Want to know more?

2. Saga Regular Drawdown Lifetime Mortgage

Most equity release products are designed to provide you with an initial lump sum followed by monthly payouts for your chosen period of time or until you reach the maximum we can offer – all tax-free. The amount you release depends on your age and the value of your property.

This lifetime mortgage is available to people aged 60-80 with a UK property worth at least £150,000. It is repaid in the same way as a standard lifetime mortgage, which is usually repaid from the proceeds of the sale of your property when you die or move permanently into long-term care.

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

It is important to note that the loan is secured against your home. 

Want to know more?

Types of equity release

Equity release is available in two ways: as lifetime mortgage and home reversion plans. The guide below shows the difference types of lifetime mortgages. If you would like to know more about home reversion plans visit our home reversion plans page.

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 or until you move permanently into long-term care.

You can choose to pay some or all of 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. 

If you would like to know more visit our lifetime mortgage  page.


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, which 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 standard lifetime mortgages, the loan is secured against your home.

If you would like to know more visit our lifetime mortgage page.


Next steps

How much equity could you release?

Our free online calculator will provide an idea 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 to book a no-obligation appointment:

0800 096 7120

Monday – Friday 9am-5pm. (excluding bank holidays)
Calls will be recorded for training and regulatory purposes.

Frequently asked questions

Will I still own my home?

If you take out a lifetime mortgage, the property remains in your name, as it would with a conventional mortgage. However, if you take out a home reversion plan, the reversion company will own all or part of your property on the understanding that you can continue to live there rent-free for the rest of your life.

Are there any alternatives to equity release?

Yes, and your adviser will discuss these with you. Some possibilities might be to move to a smaller property, rent out a room in your current home or ask for help from your family. The adviser will also make sure you’re receiving all the state benefits you’re entitled to.

How much can I release?

The amount you can release depends on your age, where you live and the value of your property.

Can I take out equity release if I still have a mortgage?

It depends on the value of your home and the amount remaining on the existing mortgage. Any outstanding mortgages secured against your home will have to be paid off at the same time as taking out equity release product, usually using some of the lump sum you receive.

How much does it cost?

The costs involved include 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 to avoid too many upfront costs.

Remember that with the Saga Equity Release Advice Service there is no fee for the advice. If the Saga Equity Release Plan or the Saga Regular Drawdown Lifetime Mortgage is recommended by your adviser and it’s the product you choose, there are no valuation or set-up fees. You will also receive £425 towards legal fees paid to your solicitor on completion; if the legal fees come to more than this, you will need to pay the difference.

How much will I owe?

With a lifetime mortgage, the amount that will need to be repaid depends on the amount of equity you release, how long you’ve had the loan, the rate of interest charged and any fees added. If you repay the loan early, an early repayment charge may apply.

A home reversion plan isn’t a loan and so it won’t accumulate interest. Instead, the provider will receive the agreed proportion of the property value when it is sold following your death or permanent move into long-term care.

Can I move house?

Generally, yes. Many products can be transferred to a new home as long as the property is acceptable to your provider as continuing security for the equity release product. With a lifetime mortgage, if your new property is worth less than your old home, you may have to repay some of the outstanding loan.

Will I be able to leave an inheritance to my children?

Equity release could enable you to help your family while you are still living, but it will reduce the value of your estate and therefore the amount that will go to your beneficiaries on your death. Your adviser will assess how equity release is likely to affect the value of your estate.

With a lifetime mortgage, if your home sells for more than you owe, the excess would form part of your estate. You could protect some of the value of your estate by choosing a lifetime mortgage with interest repayments, thereby reducing the amount of interest that accumulates over the full term of the loan.

With a home reversion plan, you know exactly what proportion of your home’s value will be left to your loved ones, but not what this proportion will be worth.

Equity release will not affect any other money you leave as part of your inheritance – for example, from savings or life assurance policies.

Am I at risk of negative equity?

Your adviser will only recommend products that meet the standards of the Equity Release Council. These include a guarantee that when the property is sold after you die or have moved into permanent long-term care, you or your beneficiaries will not have to repay more than the sale proceeds, even if this is less than the amount owed.

How long will it take to get my money?

Once you’ve chosen a product and the application has been accepted by the lender, it will typically take six to eight weeks until you receive the money. This is normally three to four months from your initial contact with the Saga Equity Release Advice Service, taking into account the time it takes for your adviser to assess your situation fully, make their recommendations and for you to then make a decision.

Who are the providers and how they are 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 product. The Saga Regular Drawdown Lifetime Mortgage and the Saga Equity Release Plan are 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.