BEACON IFA

Equity Release

No obligation, whole of market advice from
experienced local advisers across South Wales
BEACON IFA

Equity Release

No obligation, whole of market advice from experienced local advisers across South Wales

What is equity release?

Equity release, also known as a lifetime mortgage, is a popular way to release money as a cash sum or regular income in retirement. You effectively unlock the value of your home to use as you wish now, and it is paid back when you either go into long term care or pass away.

It has helped many achieve financial freedom in their later years, whatever that means to each person. For some it’s the ability to help out grandchildren with big outgoings like home deposits, for others it’s the ability to fund the holiday of a lifetime or a home renovation.

These days there are a huge number of plans available depending on your individual situation – you can choose to pay or not pay interest, to safeguard a percentage of your home’s value or to release the maximum possible (known as home reversion). Beacon IFA are completely independent and impartial and will be able to search the entire market to find the right plan for your needs.

How does it work?

It is essentially a loan against the value of your home, but without any monthly payments. It is instead repaid by selling the property when the last surviving borrower goes into long-term care or passes away. How much you can borrow will depend on the value of your home and your age.

As with any loan, there are benefits and risks to weigh up which our advisers can help you work out. One of the key downsides is that it will reduce any inheritance you have built up. It may also affect eligibility for means tested welfare benefits and the amount of tax you pay.

Key Benefits

YOU CAN CONTINUE TO OWN YOUR HOME

Most plans will allow you to stay as the legal homeowner until the last surviving borrower moves into long-term care, or passes away. Even if you don’t, you will never be thrown out, even if you go into negative equity. 

CHOOSE YOUR MONTHLY REPAYMENTS

Some choose to pay monthly interest payments to ensure the mortgage never increases, others choose to maximise their spending money by adding any interest to the loan. 

WITHDRAWALS TO SUIT YOU

Based on your needs you can either choose to receive a one-off cash sum, or spread the money over time, complementing your pension.

CHOOSE TO PROTECT YOUR INHERITANCE

You can choose to safeguard a percentage of your home’s value for your inheritance, or alternatively you can choose home reversion to release the maximum possible.

Key Risks

REDUCED INHERITANCE

The sale of your home will go towards paying off your loan so your inheritance will be reduced. If you choose to add interest on, the loan will grow over time, reducing your inheritance by a higher amount each year.

IMPACT ON WELFARE BENEFITS

If you are eligible for welfare benefits, releasing equity can impact them – our advisers can help work out if and how you will be affected.

IMPACT ON TAX

Releasing equity can impact on your tax position as your income will increase. A financial adviser will help explain how you might be affected.

LIFETIME COMMITMENT

You will be committing to this mortgage for life, if you want to end it early there may be substantial charges to pay.

How you can use the money

How you use the money is completely up to you. Here are some examples from past clients:

HOME IMPROVEMENTS

FUNDING LEISURE AND HOBBIES

CONTRIBUTING TO HOUSE DEPOSIT

SUPPLEMENTING PENSION INCOME

TRAVELLING THE WORLD

INHERITANCE TAX PLANNING

How the Process Works

1.

Face to Face Meeting

One of our experienced independent financial advisers will review your plans with you in person, talking through the benefits and risks to help you decide if equity release is right for you, all free of charge.

2.

Personalised Advice

If you decide to go ahead, your adviser will recommend the policy or policies they believe are right for you. You can then choose the option that best suits you, and complete the application.

3.

Home Valuation

The provider will need to arrange an independent valuation of your home, just like with a mortgage – this will decide the maximum amount you will be able to borrow.

4.

Track your Application

We will track your application and keep you updated throughout. It can take anything from a few weeks to a few months before you receive your sum, and will involve meetings with your solicitor.

Interested in our services?

We have friendly advisers covering Powys, Monmouthshire, Blaenau Gwent, Cardiff, Swansea and Herefordshire. Call or email, or complete the short enquiry form below and we will get back to you to arrange a no obligation preliminary discussion.

Head Office

  • Beacon House
            Red Lion Square
            Tredegar
            NP22 3PW
  • enquiries@beaconifa.co.uk
  • 01495 713900