Frequently Asked Questions
This Is Why
questions & Answers Work Together
What are the fees and when are any fees payable?
The fees are payable on completion of your Mortgage and can be deducted from the advance amount or paid by the client separately. The maximum fee payable for advice is a flat fee of £1,495 and the legal fees payable are £935 inclusive of VAT, Lenders do not charge upfront fees to value your home and may charge an arrangement fee for some of their products. A full breakdown of fees payable is provided to you as part of the advice service, prior to any decision being made to proceed.
How long does it take?
On average it takes up to 8 weeks from application to completion, cases involving Powers of Attorney do take longer as there are more requirements to cover at the lender and solicitor.
What is the minimum and maximum age?
Minimum age is 55 and certain lenders have no maximum age.
How much can I borrow?
The amount available to you depends on a number of factors such as your age(s), health / lifestyle and the property value. Higher amounts of borrowing attract a higher fixed interest rate so full and proper consideration needs to be given to this aspect of your application.
Do I keep ownership of my house?
Yes. A Mortgage needs to be created against the security but the house remains yours and you continue to benefit from any growth in value.
Should I discuss things with my family?
It is sensible to do this as often the family have questions that add value to the process and help with the understanding of how the products work. It is perfectly acceptable if you wish for family to be present at any meetings we have.
Which is the best lender?
My advice service is designed to find the best lender and product for you. The lenders compete heavily on rates, fees and product offerings so things change constantly in the market.
Will I be allowed to move home?
Yes. If you wish or need to move home in future, this is allowed. It is often the case that you can take the Mortgage across to another home, much the same as a conventional Mortgage.
Can I repay the debt in my lifetime?
Yes. If this is something that you plan to do, our advice service can accommodate your wishes and show you the best products to achieve this.
Can I ensure that an inheritance is left to my children?
Yes. Most lenders offer a guaranteed inheritance option. My advice process covers this with you.
If I do not pay the interest, do I lose my home?
No. The products so not require you to pay interest during your lifetime. The interest payable is added to the Mortgage and repaid when the home is eventually sold. It is possible to make interest payments if you wish, as this will have the benefit of reducing the amount of interest that builds up. This is part of the advice process and will be discussed with you.
Will I need a solicitor?
Yes. There will need to be a solicitor that acts independently for you. I can introduce you to one of the specialist firms available and the cost for their work is £935, payable on completion.
Can my son / daughter / friend attend any meetings?
Absolutely yes if required.
How does my health and lifestyle affect things?
Some of the lenders can provide a lower rate and/or a higher amount if you have certain health / lifestyle conditions. This is part of my advice process.
What is drawdown and how does it work in my favour?
A drawdown is a facility for funds to be released to you in future. No interest is payable on the drawdown amount until it is taken. Such facilities are often used when clients have a future borrowing need in addition to their need for funds initially.
What is drawdown and how does it work in my favour?
A drawdown is a facility for funds to be released to you in future. No interest is payable on the drawdown amount until it is taken. Such facilities are often used when clients have a future borrowing need in addition to their need for funds initially. The rate charged on the drawdown amount is the rate applicable at the time the funds are taken.
I have placed my home in Trust for my children – can I still borrow funds?
No. Lenders will not lend on properties that are in Trust.
I have spray foam insulation installed in my loft – is this a problem?
Yes. Lenders will not lend on properties where spray foam insulation has been installed. The spray foam would need to be professionally removed prior to proceeding with any application. There are specialist firms that can complete such work.
Are all types of property acceptable to all of the lenders?
No. Certain construction types are not acceptable. I can assess this as part of your enquiry and advise on the most suitable lender for you.
What are the interest rates and how are they calculated?
The rate is based on a number of factors such as your age(s), amount borrowed as a percentage of overall value and health / lifestyle. Once a full fact find is completed, the best lender and rate can be advised to you. Indicative rates can be discussed at an initial stage only.
What is the most common mistake clients make?
The most common mistake is in not considering the amount required fully or how any future plans might affect things. My advice process will help you in your decision making around this.
What if Equity Release is not right for me / us?
If Equity Release is not suitable for you I will explain why. A more suitable alternative might be available from another professional connection, who will put you in touch with.