Equity release advice

Yes, you will continue to own your own home providing fulfil the terms of your agreement. All plans that meet the standards set by the Equity Release Council guarantee lifetime tenancy in your property, regardless of what happens to future interest rates, property values or investments.

There are four main costs associated with equity release.

1. Advice fee

At StepChange Financial Solutions we don't charge any advice fees.

2. Valuation fee

This is payable when you submit your application and usually depends on the estimated value of your property.

3. Legal fee

We recommend that you agree a fixed fee with your solicitor once your equity release offer is confirmed. Typical legal fees range between £400 and £500. If you’re purchasing a property, or the legal position of your property is not straightforward, additional costs may apply.

4. Application fee

Some lenders may charge an application fee. Where this is the case it typically costs £695.

The amount of inheritance available will be the difference between the proceeds from the sale of the house and the amount outstanding on the plan when it's redeemed.

We can't predict the future value of your property when it's eventually sold so we can't predict what inheritance will be available.

Some providers offer an inheritance protection facility on their plans which lets you protect a specific percentage of the property's future value. Your advisor will discuss this option if one of your priorities is protecting an inheritance.

If you release equity with a repayment option, this is possible. Most lifetime mortgage providers will offer you the opportunity to make flexible repayments.

Read our guide to releasing equity from your home.

As with all mortgage agreements and secured loans there is the risk of house repossession if you have arrears you’re unable to repay. But is this is rare and a last resort taken after other ways to collect the debt have been explored.

As with all mortgage agreements and secured loans there is the risk of house repossession if you have arrears you’re unable to repay. But is this is rare and a last resort taken after other ways to collect the debt have been explored.

You should also be aware that:

• If house prices fall you may owe a larger percentage of your property’s value
• And if you sell your home a short time after taking out the equity release you could lose some money overall

You could look into downsizing by moving into a cheaper property, using savings, or taking out more credit, such as a loan – which may be secured against your property.

If you’re considering equity release to deal with debt problems, an alternative may be a repayment plan (where you make lower, more affordable payments to your creditors) or an insolvency solution, such as an individual voluntary arrangement (IVA).