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Illustration: If your house is worth £200,000 and you are aged 65 then you could release up to £60,000 from your property to improve your lifestyle. The amount you could raise at your given age must exceed the value of any outstanding mortgage.
* If a couple, this should be the age of the youngest applicant |
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Peace of mind in an uncertain market
Equity Release providers have not changed their interest rates in the same way as the mainstream mortgage market has. This is because they raise money to lend on a longer term basis and they see the equity release market as low risk because you cannot default on your loan.
So the main impact during uncertain times is the falling value of your home. This means that you will not be able to raise quite so much money against your home.
You can also check that your recommended Equity Release provider is a member of SHIP (Safe Home Income Plans Ltd). A SHIP plan guarantees that you cannot lose your home - whatever happens to the stock market or to interest rates. All SHIP plans carry a "no negative equity" guarantee i.e. you will never owe more than the value of your home.
So if you are a 65 year old couple with a £200,000 property you could currently get a loan of up to £60,000. But if your house fell in value by 10 per cent you could only obtain a loan of £54,000. However this may still be enough for you to achieve your lifestyle ambitions and, if the plan you take out is a SHIP plan, then you will also have the peace of mind that you are after.
What is SHIP?
Safe Home Income Plans (SHIP) is a company supported by the leading providers of home income and equity release plans. It was launched in 1991 and is dedicated entirely to the protection of planholders and promotion of safe home income and equity release plans.
All participating companies are pledged to observe the SHIP Code of Practice set out here. Members display the SHIP logo in their brochures and other printed material as a guarantee to their customers.
Safe Home Income Plans members have pledged to observe the SHIP code of practice, which guarantees the safety of all their products. You reserve the right always to live in your property until you die or have to go into a nursing home, and SHIP equity release also comes with a no-negative equity guarantee. This means that no matter what happens to property prices, your family or estate will never be left with a debt that cannot be repaid by the sale of your property, providing peace of mind for you and your family.
An Equity Release Plan will reduce the value of your estate, will not be suitable for everyone and may affect your entitlement to State Benefit. To understand the features and risks ask for a personalized illustration.
To arrange an appointment without obligation go to our 
To ask a question without obligation call the Equity Release Helpline on 0845 122 9919
Cheshire Equity Release is a trading name of Wentworth Financial Services who are an Introducer for Key Retirement Solutions Limited - the UK 's leading independent financial advisers specialising in equity release. Key Retirement Solutions is authorised and regulated by the Financial Services Authority. Key Retirement Solutions’ typical fee is 1.65% of the amount released and is payable upon completion of a plan. The Lender or Reversion Company will pay Key Retirement Solutions a procurement fee (commission) which is retained.