Our advisers understand that the prospect of acquiring Equity Release finance can be daunting for many consumers. There are many Myths of Equity Release, derived from the product’s poor reputation from past misselling in the industry, that has led to unfair criticism. Many consumers are dismissing the Benefits of Equity Release without consulting with a qualified adviser. Equity Release can be a positive life changer for homeowners, over the age of 55, looking to raise finance without the burden of ongoing payments. Our process for advising and arranging Equity Release cases is showcased below.
Our Process – Equity Release
Initial Information - #1
Firstly, an Equity Release adviser will collect your basic personal details. This is likely to take place over telephone or e-mail correspondence. Details such as dates of birth and property valuation are vital in order to assess the maximum sum that can be borrowed. With Equity Release, your borrowing capacity increases with age. The reasoning for this will be explained at your consultation.
Product Research - #2
Our staff will establish a list of suitable equity release products based on your requirements. The products will showcase costings, such as interest rate, and other conditions. Equity release products differ from standard mortgage products. For example, a Lifetime Mortgage product can offer a fixed interest rate that will not change for life. Therefore, you can budget exact monthly payments for the entire equity release plan.
Free Consultation - #3
An adviser will then schedule a phone or video consultation at a time that suits you, from Monday-Friday. No client fee is charged at any stage of your Equity Release.
Product Explanation - #4
Your adviser will either suggest that we apply for a lifetime mortgage or home reversion plan. For most cases, a lifetime mortgage will be more suitable. This is because, with lifetime mortgages, you retain 100% ownership of your property. Whereas, with home reversion plans, a percentage of your property is sold to the Equity Release provider. Equity Release monies can be used at your discretion. Common uses for Equity Release include holidays, home improvements and debt consolidation.
Full Application - #5
After the consultation, your adviser will leave you to decide whether you would like to proceed. You are under no obligation to continue with our services. However, if you do proceed, the next step is a full application. Our staff will fully process the application on your behalf. The only documentation required is: ID Verification (i.e Passport photo), Address Verification (i.e Driving license or Utility bill) and Buildings Insurance Schedule.
Underwriter Review - #6
The Equity Release provider’s underwriters will review the application. If the documentation uploaded is accepted, a valuation will shortly be instructed on your property. Any upfront fees, such as a valuation fee, will be disclosed to you before an application is submitted. Equity Release providers generally have more strict property criteria than traditional mortgage lenders. We advise that you divulge any property concerns that may be easy to overlook – such as legal covenants.
Equity Release Offer - #7
Once an application has been agreed, an offer letter will be issued and posted to your adviser and solicitor. You will also receive an offer letter by post or e-mail. This offer letter is legally binding to the Equity Release provider for a minimum of one month. This means that your selected product will be guaranteed for the duration of the offer validation period. Your adviser can apply for an offer expiry date extension if necessary.
Solicitor Process - #8
After the offer letter is issued, our job is complete. The conclusion of your Equity Release now depends on the efficiency of your solicitor. For most cases, applicants apply for Equity Release on their own properties. Therefore, the legal process for solicitors is more straightforward than conveyancing. However, applicants can apply for Equity Release when purchasing a property. Your adviser will explain this in detail at your consultation.
Equity Release Completion - #9
When your solicitor has completed all legal processes, the Equity Release capital will shortly be transferred to your bank account of choice. If you are making a house purchase with Equity Release, you can either accept or deny our suggested buildings insurance quote. If you accept the quote, upon exchange of contracts with the vendor’s solicitor, we will put the policy on risk for you.