Reader’s Digest's 5 Top Tips on Equity Release

As equity release becomes a natural part of the retirement planning process, that you will never owe more than the value of your home and that you retain 100% ownership of your property is becoming common knowledge. The Reader’s Digest equity release experts offer some lesser-known ‘Top-Tips’ about Lifetime Mortgages, a form of equity release.

1. Advice is essential

The finer details of equity release can be simplified and best explained by a qualified equity release adviser. Reader’s Digest can put you in touch with approved advisers who can explore your eligibility and available options.

2. Have a clear idea of your financial needs

Knowing how much money you need and what you need it for will help your allocated adviser to find the right kind of plan for you. You will be advised that by only taking what you need you can minimise the interest build up with the opportunity to reserve further funds to draw from later if needed.

3. Considering the alternatives

There are alternatives to equity release such as selling up and downsizing to a cheaper home. Should you choose to meet with a Reader’s Digest equity release adviser, they will talk you through all of the alternatives to equity release which includes exploring your benefits entitlement.

4. Take note of the repayment option

If you have a sufficient income you can opt for an interest and capital repayments plan. One year into the plan you can start making repayments of up to 10% per year. By making repayments you are helping to keep the interest build up to a minimum which maximises the amount of inheritance you leave to your heirs.

Another benefit of this plan is that you can choose to make no payments at all which may come in useful should your circumstances change such as going in to retirement.

5. Involve family and trusted friends in your decision

Equity release involves taking money from your property now, which means there will be a reduced estate for your heirs later. Even though you can guarantee an inheritance as an option, it’s recommended to involve your heirs and/or trusted friends in your decision as they will be the ones talking to your equity release provider once you pass away.

These tips are offered to help understand equity release; however, you may have further questions which are not answered here. Contact us  on 0800 029 1233 to learn more.

We will discuss your needs with a view to arranging a no obligation face-to-face home visit with one of our financial advisers.

The Flexible Lifetime Mortgage is by leading insurer Aviva and is only available through qualified financial advisers such as those working with the Reader’s Digest Equity Release Service. *(Equity Release Council Lending Figures Q3 2010 – Q3 2015) 

A Lifetime Mortgage may impact the value of your estate and could affect your entitlement to means-tested benefits. Think carefully before securing other debts against your home. To understand the features and risks ask for a personalised illustration. Reader's Digest Equity Release is a trading style of Responsible Life Limited. Responsible Life Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register ( under reference 610205. Only if you choose to proceed and your case completes will Responsible Life Limited charge an advice fee, currently not exceeding £1,490. Our adviser will talk through the setting up costs of a Lifetime Mortgage before you make any decision to proceed.

Keep up with the top stories from Reader’s Digest by subscribing to our weekly newsletter.