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Don't be left in the dark anymore.
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The Journey To Your New Mortgage !
Initial
Meeting
Let’s grab a coffee (or a Zoom/call). This is where we get to know you, your plans, and your goals. Think of it as a relaxed chat to set you on the right path. You talk, we listen!
Personalised
Package
We’ll craft a mortgage plan tailored to your needs, complete with all the suitable options. We’re like your personal mortgage matchmaker, finding the most suitable deal to make your dream become a reality!
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Leave the paperwork, lender chasing, and all the heavy lifting to us. All you need to do is sit back and relax while we make it happen behind the scenes. Our award-winning team is available 7-days a week.
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Your mortgage offer is in, and it’s time to pop the bubbly! Like all our 5-star customers, you are now one step closer to making your goals a reality.
Why Use Protex Financial For Equity Release?
Here at Protex Financial, we strive to make our only focus on you; this is why we can offer the best range of lifetime Mortgage Advice with access to 1000’s of equity release products that the market has to offer. Our equity release brokers are able to search thousands of products to make sure you are getting the most suitable deal you can possibly get.
Our mortgage team here at Protex Financial are regulated by the FCA, the Financial Conduct Authority. This means everything we do is for you; we are obligated to offer you great rates, great deals and great equity release.
We Don't Just Say It We Shout About It !
Whether you’re trying to buy your first home or remortgage with changed circumstances, get expert advice from one of the UK’s leading Mortgage Brokers to help you navigate an ever-changing mortgage market.
“Going above and beyond is what we do; we LOVE our job, and most of all, we LOVE helping our clients.”
If you need any form of Equity Release, then make an appointment with one of our mortgage brokers today. We aim to make your home buying or family insuring process as simple as possible, keeping you informed every step of the way.
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Equity Release Options
A lifetime mortgage is the most popular form of equity release. With this option, you borrow a percentage of your home’s value, and the loan, along with the interest, is repaid when the property is sold, usually when you pass away or move into long-term care. Interest can either be rolled up over the life of the loan or paid periodically to manage the overall debt.
One key benefit of a lifetime mortgage is that you retain full ownership of your home, allowing you to benefit from any potential increases in property value. However, the interest accrued can significantly reduce the remaining equity in your home over time.
Like a lifetime mortgage, a drawdown lifetime mortgage allows you to take the equity in smaller, manageable amounts rather than a lump sum. This option can be beneficial as it reduces the interest accruing on the total loan, potentially leaving more equity in your home for future needs.
Drawdown lifetime mortgages provide flexibility, enabling you to access funds as and when required. This can be particularly useful for managing ongoing expenses or making home improvements. It also helps avoid the need to take out more money than necessary at any given time, reducing the overall cost of borrowing.
An enhanced lifetime mortgage is designed for those with certain health conditions or lifestyle factors that may reduce life expectancy. Based on the perceived increased risk, lenders offer more significant amounts of equity or better terms, providing more cash to those needing it sooner.
This type of mortgage considers various health and lifestyle factors, such as smoking, medical history, and occupational hazards, which can qualify you for a higher loan amount. Enhanced lifetime mortgages can be a vital lifeline for individuals with higher care or medical costs, offering them the financial support needed during retirement.
With an interest-only lifetime mortgage, you pay off the interest on the loan each month, leaving the capital amount unchanged. This keeps the debt level stable, ensuring a more significant portion of the home’s value is retained for your beneficiaries or future needs.
This option can appeal to those with sufficient income to cover the interest payments but prefer not to let the debt increase over time. By managing the interest, homeowners can maintain more control over the equity in their property, potentially preserving a greater inheritance for their family.
A home reversion plan involves selling a portion or all of your home to a reversion provider in exchange for a lump sum or regular payments. You retain the right to live in the property rent-free until you die or move into long-term care, at which point the provider sells the property to recoup their share.
This option can offer higher cash amounts than other equity release products, as the provider benefits from future house price increases. However, it means you no longer own 100% of your home, which can affect your ability to benefit from property value rises. It’s a choice that can suit those who need a substantial sum and are comfortable with the long-term implications.
A RIO mortgage works similarly to an interest-only mortgage but is specifically designed for older homeowners. The loan is repaid when the property is sold, typically when the borrower passes away or moves into care.
This option requires monthly interest payments but can be easier for those with a steady retirement income. Unlike traditional interest-only mortgages, RIO mortgages do not have a fixed term, providing peace of mind that the loan will continue as long as you live in the home. This can be an excellent solution for retirees who want to maintain lower monthly payments while freeing up capital tied in their property.
A flexible lifetime mortgage combines features of both drawdown and interest-only mortgages. It offers the flexibility to draw funds and make voluntary interest or capital repayments. This can help manage the cost of borrowing and keep more equity in the property for future use or inheritance.
With the option to repay part of the interest or capital at any time without penalty, this mortgage provides considerable flexibility to adapt to changing financial circumstances. It is particularly beneficial for those who anticipate varying income levels during retirement or want to control the debt accumulated over time.
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Frequently Asked Questions
Equity release is a financial product that allows homeowners to unlock the value tied up in their property without having to sell and move. This enables individuals, typically over 55, to access the cash they have built up in their homes to meet various financial needs. There are two main types of equity release products: lifetime mortgages and home reversion plans.
Lifetime Mortgages
A lifetime mortgage allows you to borrow a portion of your home’s value while retaining ownership. The loan, along with the accumulated interest, is usually repaid when you pass away or move into long-term care. There are several variations of lifetime mortgages, such as drawdown lifetime mortgages, which allow you to take funds in smaller amounts as needed, and enhanced lifetime mortgages, which may offer better terms based on health and lifestyle factors.
Home Reversion Plans
Home reversion involves selling a portion or all of your home to a reversion provider in exchange for a lump sum or regular payments. You retain the right to live in the property rent-free until you pass away or move into long-term care. At that point, the property is sold, and the provider takes their share from the sale proceeds.
Benefits of Equity Release
- Access to Funds: Equity release provides access to cash that can be used for various purposes, such as supplementing retirement income, funding home improvements, or covering medical expenses.
- Stay in Your Home: You can continue living in your home without the need to downsize or move.
- Flexible Options: There are multiple products available, allowing you to choose one that best suits your financial situation and needs.
Considerations
- Interest Accumulation: For lifetime mortgages, interest compounds over time, which can significantly reduce the remaining equity in your property.
- Impact on Inheritance: Releasing equity can affect the amount of inheritance you leave behind. It’s important to discuss this with family members and seek professional advice.
- Costs and Fees: Equity release plans come with various costs and fees, including valuation fees, legal fees, and early repayment charges.
If you have lived in or owned a property for over ten years, you have likely accumulated significant equity. Equity in your home is the difference between its market value and the remaining balance on your mortgage.
For instance, if you have paid off 50% of your mortgage on a property valued at £200,000, the total equity is £100,000. Equity release allows you to access some of this equity, creating a lump sum of cash.
This lump sum is yours to spend as you wish since it represents the money you have already invested in your property. As mortgage brokers, we have seen clients use this money to pay off unsecured debts, fund home improvements, go on holidays, or purchase new cars.
Equity release is a complex topic, and seeking mortgage advice is crucial before proceeding.
For those aged 55 and over with a property value above £70,000, a lifetime mortgage may be an alternative to remortgaging to release equity.
With a lifetime mortgage, you can receive payments without moving out of your property. Alternatively, you can take out a lifetime mortgage if you move into long-term care or let the loan amount accumulate with interest.
Everyone’s situation is unique, so that you may use your home’s equity differently.
Initial Consultation
- Seek Advice: It’s crucial to seek advice from an independent financial advisor or a specialist equity release advisor. They can help you understand the options and determine if equity release suits your circumstances.
Property Valuation
- Professional Valuation: Your property will be professionally valued to determine its market value and the amount of equity you can release.
Choosing a Plan
- Select a Product: Choose between a lifetime mortgage or a home reversion plan based on your needs and the advisor’s recommendations. Consider the terms, interest rates, and repayment options.
Application Process
- Submit Application: Complete the necessary application forms with the help of your advisor.
- Legal Advice: You’ll need to engage a solicitor to handle the legal aspects of the transaction and ensure you fully understand the contract.
Receive Funds
- Lump Sum or Drawdown: Once approved, you receive the funds either as a lump sum, through a drawdown facility or as regular payments.
Ongoing Management
- Interest Management: For lifetime mortgages, decide whether to let the interest accumulate or make voluntary payments to manage the debt.
- Living Arrangements: You can continue living in your home as usual, with the understanding that the loan will be repaid from the sale of your property when you pass away or move into long-term care.
Secured debts are backed by an asset, such as your mortgage, which is secured against your house. These debts have collateral that the lender can claim if you fail to repay. In contrast, unsecured debts, such as personal loans and credit card balances, are not tied to any specific asset. This means there is no collateral for the lender to claim if you default on these debts.
We encourage you to contact our team if you’re considering managing or consolidating your secured or unsecured debts through equity release. Our experts can provide tailored advice and help you explore the best options for your financial situation.
If your property could benefit from a makeover, such as a conversion or extension, you can release equity to finance these improvements.
By remortgaging to release equity, you can obtain a lump sum of cash to reinvest into your property. This process will also transition you to a new mortgage deal, typically a repayment mortgage.
Potential home improvement projects include installing a new kitchen, adding a garden extension, creating a home office, undertaking a loft conversion, or building a new garage – the choice is yours! If you’re interested in exploring these options, contact our team for expert advice and assistance.
An advisor’s responsibility is to help clients find the best possible mortgage deal that suits them well at a given time. A mortgage broker, an independent mortgage adviser, can search through thousands of deals to save clients time and money.
The role of an equity release advisor is to act as a bridge between borrowers and lenders in terms of experience and knowledge. They offer advice and support throughout the whole process of buying or remortgaging, helping customers with any hurdles they may face, such as surveys, legal reports, and valuations.
Finding the right equity release plan can be hard work, but having a lifetime mortgage broker by your side every step of the way can be priceless.
We are trusted lifetime mortgage brokers who will review your finances, compare mortgages available to you, and navigate lender criteria, confirming our expertise in this area, thus ensuring you get through the application process while securing the best deal in return.
If you take out a lifetime mortgage, you can unlock the equity in your property as a tax-free lump sum, which can be used to pay off your existing mortgage. Often, the interest accumulates over time.
Lifetime mortgages can affect your financial capacity. Since you already have significant outgoing expenses (your current mortgage), lenders may be more cautious about how much they will lend to you.
Equity release can be used to fund home improvements, finance other significant expenses, such as a holiday or a wedding, whether your own or a family member’s, and more. It’s important to remember that this is your money, so you have the freedom to spend it as you wish!
If you have any questions or want to speak with an equity release mortgage advisor.
You retain full home ownership when you take out an equity release mortgage. When you either pass away or move into long-term care, the remaining equity balance will be repaid from the property sale. Any leftover funds will then be passed on to you or your estate.
A lifetime mortgage is a type of equity release product that allows homeowners, typically aged 55 and over, to borrow money against the value of their home while retaining ownership. The loan amount and the accrued interest are usually repaid when the homeowner passes away or moves into long-term care. Here are the key features and benefits of a lifetime mortgage:
Key Features
Retain Ownership: Unlike selling your home, a lifetime mortgage allows you to continue living in your property for the rest of your life or until you move into long-term care.
No Monthly Repayments Required: Typically, there are no monthly repayments to make, as the loan and the accumulated interest are repaid from the sale of the property when the plan ends.
Interest Accrual: Interest on the loan accrues over time and compounds, which means the amount owed increases, sometimes significantly, throughout the mortgage.
Flexible Options: There are various types of lifetime mortgages, such as drawdown options that allow you to take the loan in smaller amounts as needed, rather than a lump sum, and interest-only options where you can make interest payments to manage the amount owed.
Inheritance Protection: Some plans offer the option to ring-fence a portion of the property value as an inheritance for your beneficiaries.