Royal London has chosen to introduce its customers to the experts at Royal London Equity Release Advisers. They will provide advice on equity release products from across the whole market and will make a recommendation to you based on your personal circumstances. You will not receive advice or any recommendation from Royal London. The information on this page has been provided by Royal London Equity Release Advisers to help you understand more about releasing equity.
What is equity release?
Equity release is a way to unlock a portion of the value of your home and borrow it as a tax-free lump sum, either through a Lifetime Mortgage or a Home Reversion Plan. Equity release with a Lifetime Mortgage is available to homeowners aged 55 or over, and could be used to help fund life in retirement, pay off an existing mortgage and more.
Equity release options explained
As part of the process, you'll speak to the team at Royal London Equity Release Advisers. They will give you guidance and support, so you can decide if equity release is right for you.
If you choose to release equity and take cash from your home's value through a Lifetime Mortgage, there are two options you might be eligible for.
It’s worth comparing them both and visiting the Lifetime Mortgage page so you can make an informed decision.
Lump Sum Lifetime Mortgage
Release a one-off tax-free cash lump sum from the value of your home. This option comes with a fixed interest rate for life and comes with the guaranteed right to make optional payments within your lifetime.
Drawdown Lifetime Mortgage
Release an initial tax-free sum from the value of your home and enjoy the same features as the lump sum option. You can then place a further amount of equity into an interest-free reserve. You will only be charged interest on funds that have been taken out of that reserve. The interest will be fixed at the prevailing rate at the time which may be higher or lower than your initial release.
How does equity release work?
Lifetime Mortgages are popular products in today’s equity release industry. They offer homeowners flexibility when choosing how to receive their tax-free cash, and how they want to repay it. They can even choose to not make repayments.
To help you decide if a Lifetime Mortgage is right for you, the key equity release features and some other important things that you will need to know are introduced below.
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Eligibility
You must be aged 55 or over, own a home in the UK worth at least £70,000 and want to release at least £10,000 from it.
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Home ownership
You’ll still own 100% of your home, and you can move to another property if it meets lender criteria.
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Flexible repayments
You can choose to make voluntary repayments, repay some or all of the interest, or make no repayments at all.
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Clearing the loan
The amount borrowed plus interest is only paid back when the last surviving homeowner dies or enters long-term care.
Important things to know
- You'll have a 'no-negative equity' guarantee, which means you will never have to pay back more than your home is worth.
- Lifetime Mortgages reduce the value of your estate and could affect your entitlement to means-tested benefits.
- As part of your application, you may have to pay to have your property valued, and other associated costs.
- You'll pay a fee for the advice given only if you take out a plan with the help of Royal London Equity Release Advisers. There may also be an application fee.
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Property and legal fees
You'll need to think about property valuation fees, solicitors fees and lender application fees. If you're buying a property, you might have to pay stamp duty and conveyancing fees.
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Advice fee
If you enquire with Royal London Equity Release Advisers, there's also an advice fee. It will be no more than £1,690, and will only be charged if you take out a mortgage product. By offering a capped fee instead of a percentage of the amount borrowed, you won't pay more if you want to borrow more. You can either add your advice fee to the amount you borrow or pay it up front.
For more information on the fees, charges and other costs, read their guide How much does equity release cost?
How to apply for equity release
Speak with the team
Contact Royal London Equity Release Advisers to schedule a no-obligation appointment with a fully qualified equity release adviser. They'll answer any questions you have.
Explore your options
Your adviser will get to know you and your personal goals, so they can assess which type of equity release product is right for you.
Find the right product
Your adviser will research all the suitable equity release products on the market and suggest the options that suit your needs.
Start your application
If you're happy to apply for a product, your adviser will help you fill out your application. It'll also be checked by a second qualified expert from Royal London Equity Release Advisers before it's sent off.
They'll keep helping you
After you apply, your adviser will check in at every key step of the process. They'll also contact you after a year to see if you're still happy with your product.
Get in touch with the Royal London Equity Release Advisers Information Team
0800 023 9311
Their lines are open Mon to Fri: 9am-8pm and Sat: 9am-5pm, excluding bank holidays.
Alternatively, you can schedule an appointment for their Information Team to call you back.
More equity release options
“Royal London Equity Release Advisers” is a trading name of Responsible Life Limited. Responsible Life Limited uses Royal London branding under licence from Royal London Marketing Limited. “Royal London”, the “Royal London logo” and “Royal London Equity Release” are registered trade marks of The Royal London Mutual Insurance Society Limited. Royal London Marketing Limited and The Royal London Mutual Insurance Society Limited do not provide regulated mortgage advice.
Responsible Life Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register under reference 610205. Registered in England and Wales under company number 07162252. Registered office: Princess Court, 23 Princess Street, Plymouth PL1 2EX.
Responsible Life Limited is a wholly owned subsidiary of the Royal London Group who may benefit if you choose to take regulated mortgage advice. Being a wholly owned subsidiary of the Royal London Group does not alter Responsible Life Limited’s regulatory responsibilities.
If you choose a mortgage with required payments during your lifetime then your home may be repossessed if you do not keep up with the payments. Borrowing with a Lifetime Mortgage or Retirement Interest-Only Mortgage will reduce the value of your estate. Receiving a cash lump sum may also affect your entitlement to means-tested benefits. Think carefully before securing other debts against your home.
To understand the features and risks, ask for a personalised illustration. Your adviser will talk through the setting up costs of a mortgage. Only if you choose to proceed and your case completes will Responsible Life Limited charge an advice fee, currently not exceeding £1,690.