High Value Equity Release Provider
Releasing the equity from your home can seem a challenge, especially if it is something you have never done before. There are so many companies and opinions out there you might be asking yourself, who really are the equity release experts? Where do you even begin with the whole process? Most importantly, who can you trust to advise you properly and deliver an exemplary service? At Bower Home Finance, we completely understand how you might be feeling, which is why we offer:
Whole of Market Advice
We’re proud to be a leading independent mortgage and Equity Release specialists. We’re also whole of market meaning we can source deals from all lenders.
High Net-Worth Cases
We specialise in dealing with high value and high net worth cases, offering a discreet and tailored service for those over 55 looking to release cash from their property.
Tailored Financial Planning
Find out how much equity you could release from your high value home and look at your broader financial planning.
A Confidential, Personal Service Tailored with Respect
Bower has been a proud member of the Equity Release Council since its launch. This membership means all the equity release advice and plans we suggest will always meet the highest standards of safeguards and guarantees
Equity release for high net worth individuals
We are a truly independent company so we are not tied to any lenders. Which gives us the flexibility and freedom to search the whole of the market for you and our high net worth clients. Since we began, our professional services have been recommended by the most prestigious financial and legal companies in the UK. We like to make everything clear and simple.
How to find the right high value equity release plan that’s right for you
Can I release less than £250,000 of equity from my property?
At Bower Home Finance, our clients typically release over £250,000 of equity from their property. However, if you’re not looking to release this much, we offer an alternative equity release service at Bower Home Finance for those looking to release equity from their property but aren’t looking to release larger sums of money. Speak to an adviser today to learn more about your options.
Do you want to release a lump sum?
If so, you may need a Lump Sum Lifetime Mortgage. This option lets you release a tax-free lump sum in cash from your property without having to make regular monthly payments. All the money you owe, including interest, is repaid when your home is finally sold.
Do you want to release a lump sum?
Then you might need an Interest-only Lifetime Mortgage, here you only pay the interest from the tax-free money you’ve released every month, so the basic amount you owe doesn’t get any bigger (just like an interest payment on an interest only mortgage). There is also an option to make partial, or even no interest payments.
Would you like to pay all your mortgage interest?
You may need a Drawdown Lifetime Mortgage, this lets you withdraw an initial tax-free lump sum, then make additional withdrawals as and when you need it. These plans are cost-effective as you are only charged interest on the money you release.
Do you need more flexible features?
Inheritance protection – you can ring fence a portion of your property’s future value to guarantee an inheritance to your loved ones.
Downsizing protection – allows you to move to a smaller home five years after taking out a lifetime mortgage without incurring an early repayment charge.
If you already have an equity release plan (even if it wasn’t taken out with us), it may not suit your current circumstances or you may wish to review the interest rate you are paying. So it’s a good idea to review things, and we’ll do this for free. Which means we may be able to find you a much better deal and save you money. We’ll also find out if you qualify for a top-up to your funds. Additional fees and early repayment charges may apply. We’ll take these charges into consideration to work out if switching is the right decision for you and your needs.
If so, you might need a Home Reversion Plan, this option gives you a tax-free lump sum for selling part or all of your home. You can carry on living there rent-free until you – or the last homeowner – passes away or moves into long-term care. However, your home (or part of it) will no longer belong to you and you’ll receive an amount for your property that’s lower than its market value.
Am I Eligible For High Value Equity Release?
The eligibility requirements for high value or our premium equity release offering the following minimum criteria apply:
Your Property
Typically property valued at £1,000,000 and above
The Money
Typically for releases of £200,000 and above.
Your Age
Age of youngest homeowner must be 55+
Is Equity Release Always The Right Option?
There is no ‘one size fits all’ when it comes to any financial product. What works for one person could be the opposite to another. At Bower Home Finance, we ensure you are fully informed at every stage so you know that the decisions you make will be the right ones for your individual circumstances. We always encourage our clients to involve their family, friends or financial experts in any conversations we have. That way everyone is clear about what is needed, and what the next steps are. Just so you know, we will advise not to proceed with any plans if we believe that is the best option for you.
What Can Equity Release Funds Be Used For?
Clearing and repaying an existing mortgage
Part of a broader financial planning scheme
Passing wealth on to your loved ones
Following a divorce or change in relationship
Take The Next Step
Whether purchasing your dream home or investing in luxury property, our team is here to navigate you through the complexities of high-value mortgages, ensuring a smooth and successful acquisition.
An award-winning service
The team at Bower are overwhelmed to have won the award for Best Equity Release Adviser Customer Service for the 8th year running at the What Mortgages Awards 2020.
Delighting customers with a great customer experience is at the heart of everything that we do. To win this award is a testament to the importance Bower places on high standards of advice and service that we have been able to provide, even in these challenging times. Read more about our award winning service here.
FAQs
Absolutely. With all Equity Release Council approved plans, there is a ‘no negative equity guarantee’. This means you and your family will never owe more than the value of your home. Some homeowners feel that taking out a roll-up Lifetime Mortgage means the size of the loan will increase as the interest on the initial loan accumulates over time. Several providers address these concerns by offering customers the opportunity to either pay some or all of the monthly interest on the loan and/or make ad-hoc lump sum capital repayments.
So the homeowner can pay all or part of the interest for a fixed period (for example, one year, five years or even up to the lifetime of the loan). Then from the end of the interest payment period, the interest on the loan rolls up at the rate agreed at the start of the contract. If the homeowner decides they no longer want to pay the interest during the period agreed, the loan reverts to a roll-up Lifetime Mortgage and no more monthly interest payments are required. Alternatively, the homeowner can pay a percentage (typically 10%) of the original amount borrowed each year without penalty. All this means you always stay in control. Of course, Bower will be with you every step of the way too.
Some popular uses of equity release include:
- Debt consolidation by repaying either secured or unsecured debt (like mortgages, credit cards and loans)
- Supplementing retirement income by using draw-down facilities
- Providing emergency funds
- Buying a second property or a holiday home
- Providing financial support to children and grandchildren (for things like clearing debt or paying school/university fees)
- Helping children and grandchildren on to the housing ladder
- Funding care in your own home or providing domestic assistance (such as cleaner or gardener)
- Provide money for essential home improvements
- Buying a new car or funding holidays
- Planning inheritance tax
- Maintaining or improving a good standard of living in your retirement
Lump Sum Lifetime Mortgage: Here you can release a lump sum in cash from your property without making regular monthly payments (although some plans let you do this). This lump sum, plus accrued interest, is repaid when your property is sold. This normally happens when you pass on, move into long-term care or permanently leave the property.
Drawdown Lifetime Mortgage: Instead of receiving your cash as a lump sum you can release it as and when you need it. These plans are cost-effective as you are only charged interest on the money you release.
Interest-payment Lifetime Mortgages: Interest-payment lifetime mortgages work like a lifetime mortgage, with the added flexibility that you can make one-off or regular payments of up to 10% off the capital owing (not the interest). With some plans you can pay a percentage of the interest and have the remainder rolled up, or only pay the interest for a chosen term. Please note, you need a monthly income to meet the interest payments on this type of plan, and eligibility is subject to credit status for interest-only mortgages.
Equity release is a safe option for releasing the wealth built up in your property to provide a source of income, or cash lump sum to spend as you wish.
Naturally, there are implications to this which is why it’s important to fully understand all the advantages and disadvantages of these Lifetime Mortgage plans.
Advantages of Lifetime Mortgages
- You continue to live in your own home, rent free, for the rest of your life or until the last person moves into permanent residential care
- The ‘no-negative equity guarantee’ means that your estate will never owe more than the property is worth when it is sold and you will never have to repay more than the value of your home
- The tax-free cash you release can be used for home improvements, repaying a mortgage or other loans, gifting money to family or simply enjoying retirement, whilst continuing to live in your property
- With some plans, there are no regular payments to make, the option to make repayments is yours
- The flexibility of modern Lifetime Mortgage plans means that you can release the money as a lump sum, or a lump sum with a drawdown facility which means you only pay interest when you need the money
Disadvantages of Lifetime Mortgages
- The value of your estate will reduce so the amount you can pass on as inheritance will also decrease
- Your entitlement to certain state benefits may be affected (we will advise you if that may happen)
- If you wish to repay or end the plan early there may be financial penalties in doing so (some products have greater flexibility than others in this regard)
- Some lifetime mortgages are paid back with compounded interest and no monthly repayments; this means that over the longer term, the amount you owe can grow significantly (full details will be provided before you decide if this is an option)
- You should always consider alternative options, such as downsizing, asking your family for financial help or taking out a normal residential mortgage or unsecured loan
Our Customer Reviews
IMPORTANT TO KNOW
At Bower Home Finance, 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.
Bower Home Finance provides independent, impartial whole of market equity release 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 £1,695 be payable.
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. If you are considering equity release, we strongly recommend that you read our Equity Release page carefully and talk to one of our specialists before deciding if you wish to proceed.
To find out more about any of the products and the service we provide, please call us on freephone 0800 411 8668, request a call back, email us, or use our live chat on our website.
Please be aware that equity release may involve a home reversion plan or lifetime mortgage which is secured against your property. All features and risks are thoroughly explained in your free personalised illustration.