Equity Release
At Bower Home Finance, we provide whole of market equity release advice that helps our customers safely access tax free money from the value of their property.
An equity release plan could be an option for those wanting some financial freedom to maybe repay an existing mortgage, do some home improvements or finance a more comfortable retirement. Equity Release Council plans through Bower Home Finance provide you with the latest product features and safeguards so you can confidently unlock cash from your home.
Or, if you’re ready to start the process, call our team on 0800 411 8668.
What Is Equity Release?
Equity release offers homeowners over the age of 55 to release money tied up in their home (the equity) without the need for having to move from, or sell, the home they love.
In simple terms, the amount of equity available in your property depends on the value of your home minus any outstanding mortgage(s) and / or secured loans.
At Bower Home Finance, we have access to all the products across the whole equity release market to enable homeowners to release equity in the way that’s right for them.
The money released is completely tax free and depending on what type of plan you choose can be accessed as either a tax-free cash lump sum or allow you to access the cash in the form of a drawdown facility as and when needed.
Is equity release safe with Bower Home Finance?
Yes, Equity Release is safe with Bower Home Finance because we are members of the Equity Release Council (ERC). We have over eighteen years of experience in providing thousands of our customers with advice that meets the highest standards.
Is equity release regulated?
Yes it is. Equity release is regulated by the Financial Conduct Authority (FCA).
Who is the Equity Release Council?
The Equity Release Council is dedicated to safeguarding consumer interests through strict standards and ethical practices. Established in 1991 as Safe Home Income Plans (SHIP) and rebranding to the Equity Release Council in 2012, the Council brings together lenders, advisers, solicitors and surveyors under a stringent Code of Conduct.
The Equity Release Council provides consumers with a neutral trade body that embodies protection and safeguards for customers through setting high industry standards of membership.
Bower Home Finance has been a proud member of the Equity Release Council since its launch. This means all the equity release advice and plans we provide meet the highest standards of safeguards and guarantees.
By promoting transparency and maintaining high industry standards, the Equity Release Council ensures a secure and positive experience for consumers looking to unlock their property wealth.
5 equity release safeguards to protect you:
- For lifetime mortgages, interest rates will be fixed or capped for the life of the loan
- You have the right to remain in your home for as long as you want to
- You can move to another home without paying any extra charges (subject to lending criteria)
- you’ll never owe more than the actual value of your home through the No Negative Equity Guarantee
- All customers taking out new plans which meet the Equity Release Council standards must have the right to make penalty free payments (subject to lending criteria)
All our equity release lenders are members of the Equity Release Council, and we only ever recommend equity release plans that meet their high standards. For your added protection, your solicitor will carry out all the legal work. We also have a panel of Equity Release Council independent solicitors you can choose from, if that would help. These legal safeguards mean you are protected throughout your equity release journey.
Who is Eligible for Equity Release?
Equity release isn’t suitable for everyone and in order to be eligible you must:
- Be aged 55 or over (youngest applicant if you are applying as a couple)
- Own your own home worth over £70,000
- Live in the UK
- The property must be your main residence although there are products for buy to let properties and holiday homes
- Be able to pay off any remaining mortgage or secured loan with the equity you release
Do you already have an equity release plan? We can help you switch to a lower interest rate.
How Does Equity Release Work?
Equity Release works by enabling you to access funds from the equity you hold in your property. There are many factors which will influence the amount you can release which is why we want to make the equity release process simple for you.
The amount of equity in your home is equal to the property value minus any outstanding debt on your home. With no mortgage or secured debt your equity will be greater. However, there are many factors which will influence the amount you can release such as age, health and lifestyle. To get a better idea of how much money you might be able to release from your home, you can try our free equity release calculator.
If you have an outstanding amount on your mortgage, this will need to be cleared either by existing funds or through the process of releasing equity. You can then spend the remaining money in any way you choose.
What types of equity release plans are available?
There are two main types of equity release products, lifetime mortgages, interest payment lifetime mortgages, and home reversion plans.
Lifetime mortgage
A Lifetime Mortgage is a loan secured against your property enabling you to release tax-free cash without needing to move out.
- No monthly repayments
- Must be aged 55+
- Available on properties valued over £70,000+
- Optional repayments available to reduce the interest you accrue
- Available as a standard plan or a medically enhanced plan enabling additional funds to be released based on your health and lifestyle
- Available as a lump-sum cash amount or drawdown cash over time
Home reversion plan
With a Home Reversion Plan you effectively sell your home, or a percentage of it, typically 25% to 100% of your home, to a provider in exchange for a discounted lump sum. You have the right to stay in the property for life or until you wish to sell it.
- For homeowners aged 60+
- Sell all or a percentage of your home with no rental charge
- No interest to pay on the money you release
- Available as a lump-sum, regular payments, or both
- If you are older or in poor health, you may be eligible to release more funds
The drawbacks of equity release options
Lifetime mortgage drawbacks
- Entitlement to certain state benefits could be affected
- There may be financial penalties if you wish to repay or end the mortgage plan early
- Lifetime mortgage loan amount increases with compound interest
Home reversion plan drawbacks
- You will no longer own part or all of your home
- You will receive less than market value of your home
- Less flexible than a lifetime mortgage as it can be difficult to end the plan and buy back the percentage that is sold
Alternatives to equity release
Equity release adviser locations
We have equity release advisers across the UK. This means we can provide face to face appointments from the comfort of your own home or over the phone to fit in with your lifestyle.
Take a closer look at our locations and get to know your local equity release adviser.
How are you going to spend your cash?
When looking to release equity from a property, our customers typically have an idea of what they would like to spend their money on. Whether it be paying off an existing mortgage or loan, going on the holiday of a lifetime or making improvements to their home, there are numerous reasons why our customers choose to release equity from their home including:
- Consolidating or clearing existing debt
- Gifting money to friends or family
- Going on holiday
- Making home improvements
- Clearing a mortgage
- Purchasing a car
Is equity release right for everyone?
There is no ‘one size fits all’ when it comes to financial products such as equity release and what suits one person could be detrimental to another.
At Bower Home Finance, we take the time to ensure that any decision you make is right for you and your individual circumstances. We always suggest to our customers that if they wish, they can involve their family in the entire process, allowing for clear, honest and open communication about the impact of equity release.
Our customers come from a range of backgrounds and circumstances, from wanting to release equity to assist with a divorce to retired individuals looking to boost their retirement income to keep up with the cost of living. Our advisers will work closely with you to help you understand the impacts of equity release and what this could mean for any benefits you might receive.
If our advisers feel that equity release is not the right product for you, then they will let you and your family know straight away and offer guidance on alternatives that may be more suitable to your needs.
Equity Release FAQs
It is always important to think carefully and talk through big decisions with an independent financial adviser and trusted family members. Although there are many great benefits to equity release there are some risks that homeowners should always be made aware of beforehand.
Equity release can be a great way to turn your property into a cash lump sum or source of income, but this comes with some big implications which is why it’s important to fully understand and comprehend all of the advantages and disadvantages of these plans.
Here’s our guide to some of the pros and cons of equity release, helping to answer those vital questions with informed, accurate, objective, fair and balanced information you can trust.
For customers who are uncertain about what the equity release process entails, here we have broken down the stages for you from start to finish, to give you a better understanding of what is involved to help you reach an informed decision that is best for your individual circumstances.
No-one likes jargon, especially when it comes to talking about your money.
At Bower Home Finance, we want to be absolutely sure you’re clear about everything we discuss, so you can make an informed and confident decision about your equity release.
So if you’ve looking for further clarity on anything related to equity release, then just pick up the phone and talk to us.
In the meantime, here’s our A to Z guide to some of the most commonly questioned words and phrases about equity release (and all the jargon for interest-only mortgages!)
How much equity could you release from your home?
Important Information
At Bower, we will understand your unique circumstances and advise you to ensure you are receiving the best plan to meet your objectives. There are plans that allow you to make voluntary repayments and move home, subject to lender criteria. However, early repayment charges may apply in certain circumstances.
Equity release requires paying off any existing mortgage. Any money released, plus accrued interest to be repaid upon death, or moving into long-term care. Equity release will reduce the value of your estate and your entitlement to means-tested benefits now or in the future, and impact long-term care funding.
Bower Home Finance provides independent, impartial whole of market advice with an award-winning customer service experience. Initial advice is provided at no cost to you and without obligation. Only if you choose to proceed and your plan completes, would a typical advice and administration fee of £1,495 be payable.
If you are considering equity release, we strongly recommend that you read our ‘Advantages and disadvantages of equity release’ page carefully and talk to one of our specialists before deciding if you wish to proceed.
Equity release requires paying off any existing mortgage. Any money released, plus accrued interest to be repaid upon death, or moving into long-term care. Equity release will affect potential inheritance and your entitlement to means-tested benefits both now and in the future.
