The Core Products of the Equity Release Industry

The equity release industry in financial terms is still in its infancy, with new and innovative products continuously being released onto the market. At the time of writing, there are three main options available, which each provide different benefits.

3 Main Equity Release Plans

'Lump Sum' Lifetime Mortgages

It has similarities to the mortgage most people have had during the course of their lives without the need to repay during the term which, in the case of Lifetime Mortgages, normally ends on the death or entry into long-term care of the homeowner.

Your property is independently valued by a qualified chartered surveyor. The equity release lender then agrees to lend you a lump sum which is normally charged at a fixed rate of interest although variable rates are also available should they be deemed more appropriate.

Some Equity Release schemes allow the borrower to pay up to 10% of the initial sum borrowed per year without any financial penalty. If repayments are employed by the borrower(s) it would have the effect of reducing the sum owed over time as the interest and part of the borrowed capital is being repaid.

On the death or entry into long-term care of the borrower(s) the house can then be sold to repay the loan. If the beneficiaries want to retain the property for their own use they can repay the loan from other more conventional means such as a conventional mortgage or loan.

If sold, any surplus money then goes back into the estate of the deceased homeowner to be shared by the beneficiaries. Releasing funds for the homeowners allows them to enjoy a whole host of aims and objectives while still fit and able to do so.

'Draw-down' Lifetime Mortgages

Drawdown Lifetime Mortgages are exactly the same as the ‘Lump-sum’ Lifetime Mortgages mentioned previously. Instead the equity release lender agrees to lend you a smaller ‘lump sum’ plus a reserve or drawdown facility which can be used at a later date, either all at once or in smaller slices.

The initial release is normally charged at a fixed rate of interest although again, variable rates are also available should they be deemed more appropriate. The monies taken from the draw-down facility will be charged at the prevailing rate of interest offered by the lender at the time of the draw-down.

Again, some Equity Release schemes allow the borrower to pay up to 10% of the initial sum borrowed per year (and 10% of any additional borrowing from the reserve) without any financial penalty. If repayments are employed by the borrower(s) it would have the effect of reducing the sum owed over time as the interest and part of the borrowed capital is being repaid.

As with the ‘Lump sum’ Lifetime mortgages on the death or entry into long-term care of the borrower(s) the house can then be sold to repay the loan. If the beneficiaries want to retain the property for their own use they can repay the loan from other more conventional means such as a conventional mortgage or loan. If sold, any surplus money then goes back into the estate of the deceased homeowner to be shared by the beneficiaries.

Home Reversion

Home reversion plans are very different from Lifetime Equity Release plans discussed earlier. In this case some or all of your equity is sold to a lender for an agreed sum of money.

You are still entitled to remain in the property for the rest of your life without actually owning the property in its entirety. The lender will claim their share of the property on the death or entry into long-term care of the Home Reversion plan holder.

It is important to note than in all three of the options, you are still responsible for the maintenance and upkeep of the property, and ensuring that you have adequate buildings insurance.

Our Mission

At Equity Release Scotland, Our mission, put simply, is to enlighten and improve the financial standing of those who seek our professional services. On engaging with our clients, we are committed to offering clear and concise advice regarding the finance of your home and the long-term security and protection of your loved ones.

We will act at all times in an open and transparent manner ensuring our client’s best interests remain our number one priority throughout the process.

As one of Scotland’s leading equity release companies, we have access to the broadest range of equity release products, some of which are not available from other lenders. Over the years we have found that as well as our fully comprehensive advice process, our clients value:

  • As low an interest rate as possible, ideally fixed for life, to minimise the effect on equity of roll-up interest.
  • Free Valuation to ensure there are no upfront financial outlays for our clients. Any other costs are paid from the proceeds of the Equity Release on completion.
  • The availability of discounted rates or cash incentives which can, on occasion, cover any legal and advice fees falling due.

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Take Advantage of Our Market Wide Access

Take Advantage Of Our Market Wide Access

Everyone has become accustomed to the benefits of individual insurance websites which scour vast numbers of insurance providers to find the best deal for their clients.

Well, Equity Release Scotland is proud to bring similar technology the the Equity Release Sector. Our systems have saved our clients thousands of pounds over the lifetime of their agreements, and the volume of business we can deliver means that Equity Release product providers are keen to work with us.

This provides us with even more advantages, such as exclusive deals that you just won’t find by going direct. We are independent which means that we have no allegiance to any specific provider, our total commitment is to our customers.

We are always reaching out to new product vendors in the industry to get an even wider range of choice and options, as we believe that by looking out for our customers and providing the best customer service in the marketplace, we can continue to grow and expand.

Make an Informed Decision

We Believe Our Clients Should Be Empowered To Make An Informed Choice About Their Lifetime Mortgage.

On engaging with our clients, we are committed to offering clear and concise advice regarding the finance of your home and the long-term security and protection of your loved ones.

We will act at all times in an open and transparent manner ensuring our client’s best interests remain our number one priority throughout the process. The fair, open and honest treatment of our clients is at the very heart of everything we do. The advice we provide will be relevant and individually tailored to you, your family and for your immediate and ongoing needs.

The information you provide is treated in the strictest confidence and shared only with those involved in the advice process. We strive to simplify and explain the regulations in place to protect you the consumer, and fully explain the often complicated language used, so making things clearer and easy to understand.

The products and services that we provide are designed to meet your specific needs and to take into account your current and future financial position. When we have completed the advice process we guarantee our clients are left confident in the knowledge that they can make an educated, informed decision about their Lifetime Mortgage.

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Benefits of a Lifetime/Drawdown Mortgage

  • You can receive a tax-free lump sum to spend in any way you want
  • You can withdraw the money in smaller increments if required up to an agreed maximum
  • You never have to make any monthly repayments
  • You are guaranteed never to fall into negative equity
  • You are guaranteed to remain in your own home for life
  • You have the option of selling your current property and moving into another (only certain lenders may provide this)
  • You can protect a certain percentage of your property for inheritance
  • The full loan is repaid on your death

Benefits of Home Reversion

  • You can receive a tax-free lump sum to spend in any way you want
  • You can withdraw the money in smaller increments if required up to an agreed maximum
  • You retain ownership of your home
  • You never have to make any monthly repayments
  • You have an option to pay the interest preventing the overall loan from growing
  • You are guaranteed never to fall into negative equity
  • You are guaranteed to remain in your own home for life
  • You have the option of selling your current property and moving into another (only certain lenders may provide this)
  • You can protect a certain percentage of your estate for inheritance
  • The full loan is repaid on your death

1,500+

Clients Empowered

£15 million+

Borrowed
Customer Rating

Our Success Stories

What our Customers say About Us

“We just wanted to be able to stay in our home for some years to come and the local advisor from Equity Release Scotland was very helpful and understanding. We now feel very comfortable that we can afford stay in our home for the foreseeable future and have options further down the road.”

Mr & Mrs Davidson

Glasgow

“What a relief, our mortgage and debts repaid, one easy monthly payment which we can afford and the option to stop paying that in the future if we choose’ . The process was smooth and everything was clearly explained to us. We had lots of questions but our adviser was always available to answer any concerns we had....thanks a million”

Mr & Mrs Curran

Edinburgh

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