Most people start with a calculator, get a number, and assume that is their quote. It is not, and knowing the difference saves a lot of confusion later.
Here is what a real equity release quote involves, what we need from you to produce one, and how to compare two of them fairly.
Why a calculator figure is not a quote
Our calculator gives you an indicative figure. It is a guide only, worked out from your age and what your home is worth. It is useful for getting into the right area.
It is not an offer of a loan, and it cannot be. The actual amount depends on things a calculator does not know: the lender's criteria, your health, your property and the products available at the time. Some lenders offer more to people with certain health conditions or lifestyle factors, and where you live plays a part. You will be told the real numbers before you commit to anything.
How much equity can I release explains how age and property value shape the maximum.
What an adviser needs from you
A real figure starts with a proper conversation. We complete a questionnaire with you to understand your short, medium and long term goals, because that is how we work out whether equity release is the right answer at all.
Expect to be asked about:
- Your age, and your partner's if it is a joint plan. Joint plans are assessed on the younger applicant's age.
- Your property: what it is worth, where it is, what type it is, and the lease length if it is leasehold. The lease generally needs more than 75 years remaining.
- Any mortgage still outstanding, because it has to be repaid out of the money released.
- Your health, because in some cases it can increase the amount available.
- Your income and outgoings, because it helps us give relevant advice.
- Your savings and other assets, because we would not want to arrange borrowing if you already had funds and it was better to use them.
A lifetime mortgage is not income assessed. The questions about income and savings are there to make sure the advice fits you, not to decide whether you can borrow.
We are happy to discuss your case with anyone you give us authority to speak to.
The stages from first call to offer
- Initial consultation. Free, no pressure, an honest conversation about your situation and what you are hoping to achieve.
- Lender and product research. We are whole of market for lifetime mortgages, so we look across the market for a product that suits your circumstances, comparing rates, features and flexibility.
- Illustration and suitability report. You get an illustration for the recommended plan, and a written suitability report setting out our recommendation, the product features, costs, risks, and how the plan fits your circumstances. You can take all the time you need to review it.
- Application. Once you have chosen, we handle the application and liaise with the lender.
- Valuation. The lender arranges an independent valuation of your property, which confirms the maximum amount you can release and the final terms of your plan.
- The lender's offer. Your solicitor then reviews the offer with you and advises on the terms before anything completes.
What the documents show and how to read them
The illustration sets out the figures for a specific plan for your case, including the lender's fees.
The suitability report explains why we are recommending that plan, what it costs, what the risks are and how it fits what you told us. If something in it does not match your situation, say so.
The lender's offer comes after the application and valuation, and confirms the final terms. Your solicitor goes through it with you.
Look beyond the headline rate. Check:
- The interest rate. Lifetime mortgage interest rates are fixed for life, so check the figure carefully.
- Every fee: valuation, lender arrangement or application fee, and solicitor.
- The early repayment charges: how much, and for how long.
- Whether you can make voluntary payments to keep the balance down.
- Whether there is a drawdown facility, so you only pay interest on what you take.
- The terms for moving home.
Every lifetime mortgage we arrange carries a no negative equity guarantee, so you can never owe more than your home sells for.
How to compare two quotes fairly
The rate matters, but comparing two quotes on rate alone can mislead you. Compare the total cost of each plan and the terms that come with it.
Total cost. The advice fee, the lender and solicitor costs, and the interest. On a lifetime mortgage, the interest is the main cost over time. Some plans have no lender fee and a slightly higher rate instead, which can work out better or worse depending on how long you keep the plan.
Early repayment terms. These vary considerably between lenders. If there is any chance you will want to repay early, this can matter as much as the rate.
Features. Can you pay some or all of the interest without penalty? Is there a drawdown facility? Drawdown usually costs far less than taking the full amount on day one, if you do not need it all now.
How much you borrow. The interest compounds if you do not pay it, so borrowing only what you need keeps the cost down.
What equity release costs goes through each of these costs in more detail.
The things to weigh up
A quote shows you the cost of borrowing. It does not show you everything else. Equity release will reduce the value of your estate, and it could affect your entitlement to means-tested benefits. On a lifetime mortgage where you make no payments, the interest is added to the loan and compounds over time.
Sometimes the honest answer is that equity release is not right for you. Then Craig will tell you, and there is no charge for finding out.
What it costs to get a quote
Nothing from us. The initial conversation is free, and the illustration is free with no obligation to proceed.
Our advice fee is a maximum of £1,495, payable only if your case completes. If you decide not to go ahead, you pay us nothing. Lender and solicitor costs are separate, vary by case, and are confirmed to you in writing before you commit.
Equity release quotes: common questions
Is the calculator figure what I will get?
No. It is an indicative guide based on your age and property value. The actual amount depends on the lender's criteria, your health, your property and the products available at the time, and you will be told the real figures before you commit.
Does getting a quote cost anything?
Not from us. The initial conversation and the illustration are free, with no obligation. Our advice fee is a maximum of £1,495, payable only if your case completes.
Is a quote the same as an offer?
No. The offer comes from the lender, after your application and the lender's valuation of your property. The valuation confirms the maximum you can release and the final terms.
What should I compare between two quotes?
The total cost, not just the rate. That means the fees, the interest, the early repayment charges, and features such as voluntary payments and drawdown.
Do I have to go ahead once I have a quote?
No. You can take all the time you need to review the suitability report before deciding. If you decide not to proceed, you pay us nothing.
Not sure how any of this applies to your own circumstances? Craig is happy to talk it through, free and with no obligation.
Talk it through with Craig
If you want real figures for your own home rather than a calculator estimate, that starts with a conversation.
Book a call with Craig or call 0113 403 5584.
