Pension and retirement mortgages, RA Equity Release, and Lifetime Mortgages

When you are approaching retirement, you may worry about how you will make ends meet. Is your pension going to be enough to sustain your lifestyle?

As you approach retirement, you may decide that you would like some additional funds.

You may have acquired the most valuable asset during your working life in your main residence.

Equity release benefits

  1. Get a lump sum of cash tax-free
  2. There is no obligation to make monthly payments
  3. Your right to remain on your property for the rest of your life
  4. Inheritance tax liability reduced
  5. Consolidation of debt – including existing mortgages
  6. Negative equity is not guaranteed

Some of the wealth you release from your home can be used for home improvements, paying off existing mortgages, clearing debt, dream holidays, second homes, school fees, and assisting with children’s house deposits.

With the new Lifetime Mortgages, you have access to tax-free capital for retirement and financial planning. Repayments are not required during your lifetime unless you choose to do so.

As independent advisers, we provide advice on equity release and lifetime mortgages from lenders approved by the Equity Release Council.

Equity release offers lenders a variety of options to meet their needs. To ensure that you get the amazing product for your needs, it is important to get advice from an expert.

Hawsons Wealth Management prides itself on offering a personal equity release service from an independent financial adviser. Being independent means we can recommend any lender. We are able to advise you on the whole market, meaning you will get the best product for your needs.

Do visit information about lifetime mortgages

Equity release misconceptions

Equity Release has had a bad reputation over the years. Historically, some consumers have suffered from negative equity on their homes. Recent changes in regulation have made equity release a hugely beneficial and effective tool in financial planning.

When equity release is discussed with friends and family, the initial reaction is often negative. As a calculation, consumers are less likely to explore the product further.

In order to alleviate some misconceptions, we are more than happy to involve the family in the discussions around equity release.

Equity release misconceptions that do not apply to Lifetime Mortgages of the modern style are as follows:

  • We will not be able to move.

That’s not true. As long as the property meets the lending standards, all equity release plans approved by the Equity Release Council are portable.

  • The value of the property may be more reducer than our debt.

This isn’t true. The Equity Release Council’s plans have no negative guarantee. As a result, you will never owe more than the value of your home. As a result, excess debt will not be passed on to your heirs.

Our home will no longer be ours

For lifetime mortgages, this is false. A lifetime mortgage is the most famous equity release plan because you will always own your home.

  • Repayments will be made monthly

This is false. You are not obliged to make monthly recompense with a lifetime mortgage. The mortgage interest rolls up until the death of the applicants (or permanent move into long-term care). When the plan comes to a finish, the capital and rolled-up interest will be repaid. Plans that allow partial capital or interest payments to be made are available depending on your circumstances.

We are happy to schedule a free debate to discuss your requirements in detail. The meeting can be held in one of our three offices, or at your home/workplace, whichever is more convenient for you.

Home mortgages for life

The most famous Equity Release product is a lifetime mortgage

  • 100% ownership of your property remains with you
  • The right to sell is yours at any time
  • You may transfer your mortgage to a new property that is acceptable to your lender

Unlike a conventional mortgage, you are not required to make mortgage payments throughout the term. If you let the interest accumulate, it will ‘roll up’. The mortgage will remain in force until you, or, if in joint names, the last survivor, passes away or moves into long-term care. Besides the loan sum, another key difference between a lifetime mortgage and a conventional one is the way it is calculated. In a conventional mortgage, income and financial commitments play a significant role in affordability. For lifetime mortgages, the youngest applicant’s age, the property valuation, and any potential health issues will be considered.


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