FAQ’s.
Need more information? Want to understand how Equity Release works? Take a look at our Frequently Asked Questions to find out more. Still unsure? Give us a call.
Equity release plans are for the long term and can be tailored to suit your own specifications and needs. At Red we assess all your details to make sure the product is right for you and your needs. As part of our process it’s our main priority to check there are no other options open to you. These could be:
- Selling or downsizing
- Do you have savings
- Can family members help you
- Local government grants or benefits
The short answer is yes, however, this will be subject to lenders’ criteria. Being one of the most asked questions we make sure this is covered.
Staying put in your home for the rest of eternity is not a requirement of Equity Release, but there may be many reasons you wish or are forced to move. Many lenders offer “downsizing protection” within their products to ensure moving home is not a burden, but an option.
Recent innovations to lifetime lending now means servicing you interest payment is part of many products. It helps lower the impact of the loan on your estate. You can even stop and start payments as and when you like!
If you are married, or in a partnership then a joint plan will be affected with the survivor retaining benefit. If a friend or even a lodger, they will then have no rights to remain in the property
This will vary from person to person and property to property. Typically you can look to release around 15-50% of the value of your home, but this is not a set figure and is dependent on personal circumstances.
If the value of our home should decrease, you would be protected by the industry standard “no negative equity” guarantee. This ensuress that you will never owe more than the value of your home.
No. with the “no negative equity” guaranteed we ensure that is on all our products we recommend, you are your beneficiaries would never owe more than the value of your home.
Yes, in short, you can. You can use a lifetime mortgage to purchase a new residential home or invest any equity into a second “holiday” or “residential home. This will be subject to lenders criteria and individual assessment.
It will normally take between 6 to 12 weeks. This includes our first meeting all the way to completion (receiving your money). All throughout this time, we’re with you to help