How Equity Release Can Work For Your Clients

Equity Release is increasingly becoming an alternative way of funding retirement or for people approaching retirement to get access to finance, particularly in the current climate of tighter lending criteria and fewer borrowing options. Equity Release can also be a viable alternative to sub-prime mortgages for the over 50s - especially as so few sub-prime products are available now. Home Reversion in particular can often be a more affordable product, and very little credit history is required for this kind of Equity Release.

Equity Release clients are often:

• Unable to find suitable terms for a mortgage
• Struggling with mortgage repayments now that they are paying the Standard Variable Rate
• Coming up to retirement with a lump sum to pay off
• In retirement and unable to pay off their mortgage or personal debts
• Going through a divorce/separation
• Wanting to fund their retirement due to lack of pension provision
• Wanting to make a big purchase e.g. a holiday home

Why SYH Charterhouse?

• We offer tailored Equity Release solutions for customers whose needs you cannot currently meet through traditional mortgage products
• Save time and money by allowing us to give the advice, saving on your PI and Staff Training
• Gain a significant additional income stream for your business
• We can now offer an extended range of Equity Release products, including Lifetime Mortgages and Partial Release Plans, in addition to Home Reversion Plans

What Are The Equity Release Options For My Clients?

Home Reversion may suit your clients if:

• They do not need anyone else to benefit from the full value of their property
• They want a lump sum or income now, and want to stay in their own home

Summary of Key Benefits:

• Tax free lump sum
• Guaranteed tenure – the right to remain in their own home for the rest of their lives
• Not at the mercy of variable loan or mortgage interest rates
• Predictable costs
• A more appealing option with falling/stagnant house prices

Summary of Key Disadvantages:

• Tax free lump sum
• Guaranteed tenure – the right to remain in their own home for the rest of their lives
• Not at the mercy of variable loan or mortgage interest rates
• Predictable costs
• A more appealing option with falling/stagnant house prices

Lifetime Mortgages may suit your clients if:

• They have low LTVs
• They want to retain full ownership of the property rather than transferring to the Equity Release Provider

Summary of Key Benefits:

• You get the choice of a cash lump sum or income with no monthly repayments
• You keep full ownership of your home
• Some Lifetime Mortgages let you guarantee an inheritance for your family
• Some Lifetime Mortgage plans are specifically designed for people in poor health

Summary of Key Disadvantages:

• The amount you leave as an inheritance will be reduced
• The interest applied to the loan can grow quickly
• You are usually unable to release as much money with a Lifetime Mortgage as you could with a Home Reversion plan, especially when you are younger
• If you repay the Lifetime Mortgage early, you may have to pay an early repayment charge
• The plan may affect you eligibility for state benefits

How much can my client release with SYH Charterhouse Equity Release?

Now that we have extended our product range, there are a number of Equity Release options that may be suitable for your clients. Please contact the Intermediary Team on 08442 250 255 to discuss how much you can release for your clients with the different Equity Release plans available.