Santander Equity Release

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Santander Equity Release Schemes

If you are a homeowner over 55, you might consider releasing equity tied to your home.

Santander equity release is not currently available but there are other providers offering equity release, we offer a service which can put you in touch with an equity release specialist who will offer you friendly and helpful advice and can give you no obligation equity release quotes.

Lifetime mortgage

With a lifetime mortgage you take out a secured loan on a percentage of your home’s market value. It is not like a normal mortgage however so you are not expected to make monthly repayments on the loan, instead it is paid off along with any interest accumulated on it through the sale of your home after you die or move into a care home.

You remain the owner and can move to a different property if your lender approves.

There are different types of lifetime mortgages; ‘interest only’ options give you the flexibility to pay off the interest every month to keep the amount of debt to a minimum. Others known as ‘roll up’ do not require you to pay anything before the house is sold, however due to interest compounded the amount you will repay could be considerably more than the amount you borrowed. Some providers also offer ‘fixed rate’ lifetime mortgages where you agree with the lender beforehand the exact sum that they will be paid through the eventual sale of the property.

You may be worried about ‘Negative Equity’, which occurs if the amount you owe to the equity release lender becomes more significant than the value of your home. If your plan is Equity Release Council registered then it will have a ‘no negative equity’ guarantee, meaning you will never need to pay back more than the amount your home sells for, even if this is less than the amount you initially borrowed.

Home Reversion

In a home reversion scheme you would sell the property to a reversion company for less than its market value for either a lump sum or a series of ad hoc payments. They would also guarantee you the right to continue living in the property; some will charge you a reduced monthly rent others will let you stay there for free. They will not sell the property until you die or move to a care home.

Things to consider

Equity release is not always the best choice for everyone, and it will reduce the amount you can leave behind to your beneficiaries. When looking into equity release, you should consider other ways you can generate funds; you could downsize or move to a more affordable area or see if there are any state benefits you are eligible for.

There are many different types of equity release available on the market from various providers, all of which have different terms and conditions. Our equity release service can put you in touch with a specialist advisor who can offer free quotes and advice on the leading UK equity release plans, which may help you decide if one of the plans is right for you.