What is Equity Release?

Equity Release enables homeowners aged 55-95 to access some of the cash locked in the value of their home.
The equity in your home is simply its value less any mortgages or secured loans outstanding.  An increasing number of people are tapping into this wealth to help improve their lifestyle.  Many are using it to help their families enjoy the benefits now, alternatively, this equity is passed on in the future as inheritance.
An alternative way to release the equity in your home would be to sell and downsize, however, due to increases in stamp duty this can often prove too costly to make this financially worthwhile.
With people living longer and many pensions not performing as they used to, savings have to stretch a lot further to last throughout retirement.
After years of working hard to make monthly repayments, your home is likely to be your largest asset, particularly if you have benefited from an increase in house prices over the last few decades.  Unlock the value in your home to improve your life or enjoy seeing your family benefit.

Who are we?

The moneysavingdirect group has over 25 years experience in the residential and commercial mortgage market, insurance, council tax banding review and accountancy sectors. Money Saving Direct (Equity Release) Ltd is one part of the group of companies.
Money Saving Direct (Equity Release) Ltd is a national independent company specialising in raising awareness of Equity Release products and where relevant introducing customers to an independent specialist in order to help them release the value stored in their home and save money by reducing their outgoings.
We take full advantage of the wealth of knowledge, experience, property related data and external relationships throughout the group to ensure our customers have the best possible chance of unlocking the value stored in their home.

Flexibility to meet your needs

There are now a wide range of products available tailored to fit your individual circumstances.  
The two main types of products are;

Lump Sum

A tax free lump sum for you to spend as you wish.

Drawdown

You have the option to draw your tax free cash in stages if you want to.

Are you eligible?

Thousands of people are already enjoying the benefits of unlocking the value from their property. However, it may not be suitable for everyone, which is why it’s important to get independent advice before you make a decision.
You may be eligible for a Lifetime Mortgage if:

  1. You are aged 55 - 95
  2. You are a homeowner
  3. Your property is worth at least £70,000
  4. You have little or no mortgage outstanding

Finding the best deal for you

All of our customers are introduced to independent advisors specialising in Equity Release and will  receive a free, no-obligation consultation.  
Your advisor has access to search the entire UK market to find the best deal for you, including;

What the media has to say

The media is reporting record numbers of homeowners unlocking cash tied up in their properties.  House price increases over recent decades and the threat of inheritance tax have increased the appeal.  Data from the Equity Release Council, the industry’s trade body, reveal that £3.06bn was withdrawn by 37,000 homeowners in the UK in 2017, up from £2.15bn in 2016 and £1.6bn in 2015.

Top five facts about Equity Release

1  You Continue to Own Your Own Home  
A Lifetime Mortgage does not affect the ownership of your property. You and your partner are guaranteed to remain the sole owners of your property for the duration of both of your lives, or until you both enter long-term care. What’s more, most Lifetime Mortgages are portable, subject to the provider’s criteria, so you are even free to move in the future should you wish.

2  You Can Never End Up Owing More Than the Value of Your Home
All plans from lenders approved by the Equity Release Council feature a ‘No Negative Equity Guarantee’, which ensures that your estate will never owe more than the value of your property when it is sold at the conclusion of the plan.  When the property ceases to be your primary residence and is sold, the sale proceeds are used to pay off the Lifetime Mortgage and any interest that has accrued. Once the loan has been repaid, any remaining funds are paid to your heirs, as per the instructions of your Will.  In the unlikely event that the property decreases in value and sells for less than the amount of the loan, the remaining balance is written off regardless. Your family will not be left to foot the bill.

3  You Can Still Release Equity from Your Home If You Have an Outstanding Mortgage
Provided that you pay off your existing mortgage balance – with either some of the equity you release or with other savings – then you may still be eligible for a Lifetime Mortgage. In fact, clearing a mortgage to be free of restrictive monthly repayments is one of the most popular uses of a Lifetime Mortgage.  Once your existing mortgage has been repaid, the remainder of the tax-free cash you release is yours to spend entirely as you wish!

4  You Do Not Have to Make Monthly Repayments
Despite the name, with a Lifetime Mortgage there is no obligation to make monthly repayments. As with any other borrowing, an interest rate is charged – usually fixed from the start of your plan – and any interest you choose not to pay is simply added to the total.
However, certain Lifetime Mortgages feature options that allow you to repay up to 10% of the total balance per year. These repayments are penalty-free and totally voluntary but can help mitigate the build-up of interest costs.

5  Equity Release Is Safe & Regulated
Equity Release Mortgages are regulated by the Financial Conduct Authority and all regulated companies must abide by their strict complaints procedure.

Introducer Terms