Equity release

Archie John Financial is regulated and authorised to advise on Equity Release schemes.

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What are Equity Release schemes and how do they work?

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Equity Release products are designed for people over 55 to take cash value from their homes without having to move. There are a wide range of Equity Release products which can provide a valuable source of income.

The initiatives allow borrowers to stay in their homes and acquire cash released from the equity of their property until certain events occur, such as a move into long-term care or death. At this point the lender will be repaid, usually through the sale of the property.

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Types of Equity Release solution

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There are different types of Equity Release Scheme, some of which mean ownership or part-ownership of the property passes to the Equity Release provider and others where a cash sum is drawn from a promise to repay the lender on the sale of the property.

It is important, if you are considering an Equity Release scheme, to understand the differences between the various types of scheme. It’s a field we can provide considerable advice and support.

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Getting the right advice

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Equity release can be useful in some circumstances, but it is essential to seek advice as to whether it is suitable for you. As experts with these products, we can help you understand if it is the right option, so please get in touch if it is something you are considering.

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There will be a fee for equity release mortgage advice. The precise amount will depend on your circumstances, but it is usually between £495 up to a maximum of £2000.

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A lifetime mortgage is a loan secured against your home. To understand the features and risks, ask for a personalised illustration. Equity release will reduce the value of your estate and may affect your entitlement to means tested benefits.

Your home may be repossessed if you do not keep up repayments on your mortgage.

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Check that this mortgage will meet your needs if you want to move or sell your home, or you want your family to inherit it. If you are in any doubt, seek independent legal advice. AN EQUITY RELEASE PRODUCT WILL REDUCE THE VALUE OF YOUR ESTATE, WILL NOT BE SUITABLE FOR EVERYONE AND MAY AFFECT YOUR ENTITLEMENT TO STATE BENEFITS. TO UNDERSTAND THE FEATURES AND RISKS PLEASE ASK FOR A PERSONALISED ILLUSTRATION.