5 steps to applying for an equity release

Homeowners who are above 55 years of age can now turn to equity release to reach their financial dreams. Equity release provides a smooth, safe, and dependable channel for people to access the money that is locked away in their homes.

A lifetime mortgage is the most used method of releasing equity. The option is flexible and has several plans that can allow homeowners to make the most out of their property. Nevertheless, other forms of financing can cause equity release to take a lot of time to get over the line. If you are looking to use equity release to unlock your home’s value, you have to go through the following five stages.

1. Eligibility Calculator

Before applying for equity release, you have to make sure that you are eligible. In case you qualify, you have to know the amount of money you can release. Go online and search for a free equity release calculator to check your eligibility status. The calculator will help you to determine whether the equity release will help you to reach your financial objectives.

2. Consult

Releasing equity is not a light decision as many assume. You need the right information to fully understand the step you will be taking. Take as much time as you need to weigh up all alternatives. At this point, it is recommended that you call a professional to advice you. Ensure that you have a detailed projection of figures and rates to understand what you will get and use in the entire process. A good financial advisor should give you honest advice and the current information about the plans and rates. Ask any burning question since this stage will lay the foundation of your final decision.

3. Covering the Options

Once you have decided to move forward with the equity release, your next move is to book a sit down with an independent financial advisor (IFA). Look for a qualified IFA who is a member of the Equity Release Council. The IFA will help you get the best deal by showing you all the products available on the market. He or she will help you choose the right plan for your situation and guide you through the paperwork. You should not pay any fee until you complete the entire process.

4. Make the Application

Often, the application progresses quickly, but it depends with the experience of your solicitor. An experienced lawyer can speed up the process. While the application is underway, your equity release provider will instruct a qualified surveyor to carry out a valuation of your home.

5. Completion

The completion process takes between 6 to 12 weeks on normal circumstances. Once you have reached this stage, you solicitor will set an official completion date. The equity release provider will then deposit your money to the bank account of your choosing. You can withdraw your money and use it as you see fit.

For more information, visit responsibleequityrelease.co.uk and see if a lifetime mortgage is ideal for you. Remember to check the disadvantages that come with equity release.