Julia Crump has over 20 years experience working in financial services. Before becoming an equity release and lifetime mortgage adviser, she assessed the quality of advice given by advisers in a variety of financial service areas for many of the big banks to make sure they were operating within the regulator’s guidelines, was involved with pensions and acted as a debt adviser.
Why is advice so important?
There is a lot to think about when considering an equity release lifetime mortgage. That is why you can only take an equity release mortgage though a lifetime mortgage adviser.
Equity release advisers are experts who have passed detailed, professional exams, meaning they can look at your situation and work out if it is right for you. They will also help you compare different options, complete an application, and becuase you will need independent legal advice, help you find a solicitor too.
FIVE STEPS TO EQUITY RELEASE MORTGAGES
1. Talk to you family
It is of course your choice, but an equity release adviser will encourage you to talk to your family about your plans and explain why you are interested finding out more about lifetime mortgages. You would be very welcome to include them in the meeting with your adviser and most advisers encourage this.
2. Prepare for you meeting
When you make an appointment with an equity release adviser, you will need the following information:
- About you: the adviser needs to see proof of your age, identity and address.
- Your income: make a notes of things such as your salary if applicable, pension, state benefits, bank and building society accounts and any investments.
- Your outgoings: list all of your regular outgoings such as bills and food and less regular expenses such as birthdays and trips out.
- Your property: have a copy of you last mortgage statement if applicable and so some research of properties in your neighbourhood to get an idea of what you think it is worth.
3. Speak to an equity release lifetime mortgage adviser
An equity release adviser can help you understand all the benefits and risks involved. Take time to go through the personal Key Facts Illustration they give you. Feel free to take notes and ask questions as you go. Then explore your options in depth and think about the plans you would like to make for leaving an inheritance. Now is a good time to make a will and set up a lasting power of attorney if you do not have one already.
4. Start your application
Once you are ready, your equity release lifetime mortgage adviser will complete and submit your application for you. You will need to:
- Confirm if you would like inheritance protection, and if so, teh percentage of your property's value to secure for your estate. This will reduce the total amount you are able to borrow.
- Choose whether you would like a one-off lump sum, or access to smaller amounts as and when you need it.
- Decide whether or not you would want to make monthly interest payments. If you do, you will need to have your bank details ready so that you can set up a direct debit.
- Talk through the application with your adviser and confirm any changes.
- Request a redemption statement or repayment figure from your exisitng provider, if you are using money to repayt a debt such as a loan or outstanding mortgage.
- Your property will then arrange your property to be valued by a specialist surveyor.
5. Enjoy your retirement
If approved, the equity release provider will send you an offer along with a copy for your solicitor. Your solicitor will go through the legal aspects, and as sooon as the documents are returned to the equity release lender, they will release the money. After application, it usually takes around 7 to 8 weeks, and your adviser will keep you updated.
Dorset Financial Planning is an appointed representative of Beneficial Life (London) Ltd, which is authorised and regulated by the Financial Conduct Authority, FCA number 736655. Dorset Financial Planning is authorised and regulated by the Financial Conduct Authority, FCA number 779271.