You can choose to receive the money as a one-off lump sum tax free, as a number of regular withdrawals, or as a regular monthly income.

How you choose to receive the funds will be dependent on your circumstances and how you wish to use the funds. So for example, if you want to help a family member get on the property ladder with their first deposit a lump sum withdrawal would be required. However, if you wish to supplement your retirement income, then drawing a regular monthly income may be preferential.

It is important to remember that releasing equity will reduce the amount of inheritance you can pass on, and may also affect your tax position and your welfare benefits eligibility. For this reason, it is prudent to speak with a qualified advisor. Needless to say, Advice Wise hold all the necessary qualifications and authorisations to offer this advice.

Although a lifetime mortgage is a form of equity release, the difference between them is that with a lifetime mortgage you retain full ownership of your home.

With the old equity release (home reversion plans) you actually sell a share of your home in return for the cash you release. The amount you receive with a home reversion plan is usually below the current market value. The other main difference is that with lifetime mortgages the interest builds up compounding over the years of the mortgage. Because home reversion plans are not loans there is no interest.

Yes, lifetime mortgages are regulated by the Financial Conduct Authority.

Advice Wise is authorised by the FCA and holds the a Certificate in Regulated Equity Release (LIBF) / CeRER enabling us to provide clients with independent and impartial advice on lifetime mortgages.

You are not required to make any monthly payments with a lifetime mortgage.

The interest will build up year on year, and the loan capital and interest are both paid off from the sale of your home. The loan is paid off when you pass away, go into long-term care, or choose to redeem the loan for another reason.

Yes, an inheritance guarantee is offered by some providers which can ensure that you leave a certain percentage of your home to your next of kin. This can however reduce the amount of equity you can release.

Lifetime mortgages on average take 6-10 weeks from the point of application to the receipt of funds. Our advisers can help make sure that your application is successful and is completed within the necessary timeframe.

All types of equity release products including lifetime mortgages are regulated by the Financial Conduct Authority (FCA).

Stringent rules are imposed by the FCA on financial advisers and the lenders who provide these products. Financial advisers who provide specialist advice on lifetime mortgages must hold the appropriate FCA authorisation in addition to the necessary professional qualification. Advice Wise Ltd is authorised and regulated by the FCA, and we also hold a Certificate in Regulated Equity Release (LIBF) / CeRER.

Yes, you can sell your home. Unlike other forms of equity release such as home reversion plans, with lifetime mortgages you retain full ownership of your home. Therefore, you are free to sell your home as you wish at any time. Naturally the lifetime mortgage (like most others) will need to be redeemed once you sell your property.

No, lender’s affordability checks are not necessary for lifetime mortgages, however your financial adviser will look into your income and expenditure to ensure that they are providing you with the best advice on the mort suitable product for your circumstances.

Perhaps, a lifetime mortgage could affect the amount of inheritance tax your estate will have to pay. Our financial advisers are qualified to provide guidance and recommendations with regard to this matter.

Yes, funds released from a lifetime mortgage can affect any means-tested benefits that you receive such as pension credits or council tax credits etc. Other benefits which are not impacted include your state pension and any benefits regarding disability and health. It is important to discuss these with your financial adviser when looking at a lifetime mortgage.

Yes, with most lifetime mortgages you can usually repay the loan in full, but with some you may incur early repayment charges. This differs between providers and products so it is important to check these with your financial adviser. Other factors which impact this also include the amount of time you have held the lifetime mortgage and the precise reason for wishing to pay it off.

The Equity Release Council (ERC) is an independent organisation created to promote and support the providers of these products. The ERC’s strict rules and principles provide a framework for providers to adhere to in order to safeguard consumers who use these products.

Yes, you will need professional advice from a suitably qualified adviser within an FCA authorised firm

Lifetime mortgages have become more popular in recent years with many people considering them as part of their retirement planning. It is very important however to engage an appropriately authorised and qualified financial adviser to ensure that you understand how a lifetime mortgage works and all its terms and conditions. It is important to realise that it will have an impact on any inheritance you leave as well as your rights to certain benefits.

Due to this, it is a regulatory requirement to speak with an appropriate financial adviser prior to taking on a lifetime mortgage. Our financial advisers have the necessary authorisation, qualifications, and experience to consider your circumstances, and your needs and preferences in order to ensure that you get the most suitable solution.

Our professional in-house advisers are qualified to provide advice on lifetime mortgages and hold the Certificate in Regulated Equity Release (LIBF) / CeRER necessary to provide such specialist advice.