Hello there,
Happy New Year and welcome to the latest edition of the Equity Release Times.
There seems to have been a lot of fuss made about equity release recently and many retirees are asking what’s all the commotion about?
Well new figures from the Equity Release Council show that 2014 was a record breaking year, with almost £1.4bn of lending & forecasts predicting this is set to rise again in 2015. But what is driving the market forward?
Here, we look behind the scenes at its continued success and why the new Voluntary Repayment Lifetime Mortgage is helping boost these figures by breaking the mould for people requiring a flexible mortgage in retirement.
What are Voluntary Repayment Plans?

Voluntary Repayment Plans are a form of Lifetime Mortgage where you can take a lump sum and you decide how much to pay back and when. The main advantage is that lenders will accept repayments of up to 10% pa of the original amount borrowed, with NO penalty.
Therefore, you can now manage the future balance of your lifetime mortgage, whether its to keep the balance level or even reduce it over time, its your choice!
Unlike a conventional mortgage, Voluntary Repayment Plans require NO income verification; hence the term ‘voluntary’. Therefore, no proof of income is required by the lender.
When lending in retirement has been problematic, people over age 55 who own their main residence now have a solution to raising tax-free cash and choose their inheritance.
How much can I borrow?

Based on age and property value, each provider will offer a loan-to-value percentage. A typical example would be at age 65 you could raise up to 30% of the property value.
Do I qualify?

You must be aged 55 or over with a minimum UK property value of £75,000. Even people with adverse credit records can be accepted.
What can the money be used for?

Basically anything! Homeowners are using them as interest- only mortgages or even repayment mortgages, as repaying the full 10% will reduce, even repay the whole balance over 16 to 17 years!
Many people are using them to clear mortgages, consolidate debts or carry out home improvements as the interest rates are fixed for life and lower than most credit cards and loans.
Who offers Voluntary Repayment Schemes?

There are currently three lenders – Aviva, Hodge Lifetime and Stonehaven. Rates currently start as low as 5.53% (Overall cost for comparison is 5.73% APR) so fixing at these rates for life could be a wise financial decision.
Specialist Independent Advice

These Voluntary Repayment Plans are only available through authorised intermediaries including the award winning

Equity Release Supermarket.

Being independent enables us to source the whole of the equity release market to find you the best solution and the best deal.
We can provide a FREE initial consultation and have nationwide advisers who are members of the Equity Release Council and regulated by the Financial Conduct Authority.
Call the team today on 0800 678 5074 to see if the new range of flexible Voluntary Repayment Plans could be of benefit to you.
How much can
you borrow?

Use our Equity Release Calculator to find out...
How do you know
you’re getting
the best deal?

Use our Comparison Tables to find the lowest interest rates, exclusive deals and the various plans available.
There will be a fee for lifetime mortgage advice. This will depend on your circumstances, but we estimate it to be £895.
These are lifetime mortgage plans. To understand their features and risks, ask for a personalised illustration.