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All You Need to Know
How we Work
We offer fee free lifetime mortgage advice. This means that we do not charge fees at the beginning or the end of the process. Like all other advice firms though, once we have recommended a lender and if you decide to go ahead and once the case has completed, we get paid a commission. When you search around, you will find that we are quite unusual in not charging fees, but we take the opinion that by offering fee free advice means that we don't have to spend money on advertising and that overall this suits us. Whilst we might not get as many enquiries by not advertising. Once you understand how we work, you have no reason to look anywhere else.
How Equity Release Works
It's Good to Talk
Please don't be scared to pick up the phone and speak to us. It's the quickest and easiest way to find out what you need to know. You should learn more in a 15 minute conversation with us, than spending hours searching the internet.
No Obligation
We aren't pushy. We just want to give you the right information, so that you can decide for yourself whether Equity Release is right for you. The only personal information we need initially is your first name. How much you tell us after that is entirely down to you. Hopefully when you've finished talking to us, you'll have enough information to be able to decide, firstly whether Equity Release is for you or not. If it is, then great we can help. If it's not then we say our goodbyes and that's the end of it. No follow up calls, no email chasers, but we'll be here if you change your mind.
Fee Free Lifetime Mortgage Advice
We still get paid a commission by the lender that we recommend, but we don't charge you any extra
EQUITY RELEASE MYTHS
Myth 1: THEY’RE A LAST RESORT OPTION.
That’s no longer true, if it ever was. Also, the increasing flexibility of lifetime mortgages means property wealth can be used to fund a variety of later life needs. For example, in 2020 just over half (51%) of Lifetime Mortgage clients used the money to remortgage, whereas other clients used it for home improvements (37%) and gifting (14%). We apologise for the bad maths, we know it adds up to 102%, but the information has come from a compliant document and so have to use the figures. The figures may not be strictly accurate, but the general intention of how lifetime mortgages were used will be.
Source: Based on Just’s lifetime mortgage sales in 2020.
Equity Release
The old name for Lifetime Mortgages. This was an attempt to get away from the bad press that Equity Release attracted back in the 1980's
Myth 2: YOU MUST STAY IN THE SAME PROPERTY FOR THE REST OF YOUR LIFE.
With most lifetime mortgages, you can move home and transfer the loan to the new property providing it meets the lender’s terms and criteria. A partial repayment may be required.

Myth 3: YOU’LL LEAVE DEBT TO YOUR FAMILY AND LOVED ONES.
Providing the terms and conditions are met, no debt is left to your estate and you’ll never owe more than the value of your home once sold upon death or permanently moving into long term care.

No Negative Equity Guarantee
This is offered by all lenders that are members of the Equity Release Council.
Myth 4: IT’S NOT POSSIBLE TO REDUCE THE OUTSTANDING DEBT.
With some products you can make partial repayments without early repayment charges. The amount that can be repaid is usually up to a fixed amount each year. Some products also offer fixed early repayment charges that only apply for a set time period, after this there’s no charge. And some products give you the option to pay monthly interest. Although this will not reduce the amount borrowed, the debt will not increase as much as it would if you let the interest roll up over the life of the mortgage

Myth 5: EQUITY CAN’T BE RELEASED IF THERE’S AN OUTSTANDING MORTGAGE.
You can apply for a lifetime mortgage providing you pay off your existing mortgage balance. This can be done either through the equity you release or by another means. Using equity release to repay an existing mortgage could cost you more in the long-term.
Drawdown Facility
Did you know that you can borrow what you need now and have a facility available for your potential needs in the future?
Myth 6: YOU WON'T BE ABLE TO LEAVE YOUR PROPERTY AS AN INHERITANCE.
A lifetime mortgage is usually repaid by selling the property after you move into permanent long-term care or pass away. If the loan has been repaid from sale of property, any money left over can go to your beneficiaries. Also, some products let you ringfence a portion of your home’s equity to leave as an inheritance for loved ones.

Myth 7: IT'S UNSAFE AND UNREGULATED
Lifetime mortgages are regulated by the FCA. In addition, the Equity Release Council (ERC) was established in 2012 to provide consumer protection specifically for this market. Members must adhere to its standards of conduct and practice.

Property Purchase
Did you know that you can use a lifetime mortgage to move home?
Myth 8: YOU'LL LOSE OWNERSHIP AND CONTROL OF THE PROPERTY.
With lifetime mortgages, you’re the owner of your home for as long as you want to live there, similar to a regular mortgage providing you meet the conditions of the lifetime mortgage.
Myth 9: YOU’LL OWE MORE THAN THE VALUE OF YOUR HOME.
As part of adhering to the ERC Statement of Principles, all members must now feature a ‘No Negative Equity Guarantee’. This means you’ll never owe more than your home is worth once sold, even if this is less than the amount owed. This applies upon death or permanently moving into long term care. The guarantee only applies when you meet the product’s terms and conditions.
Interest Rate Fixed For Life
When you take out a Lifetime Mortgage the interest rate is fixed for life. This gives you absolute certainty of how the debt will increase if you choose not to make payments.
Notes: • Taking out a lifetime mortgage will reduce the value of your estate • Taking out a lifetime mortgage may effect your entitlement to state benefits • Using equity release to consolidate other debts could cost you more in the long term • A lifetime mortgage is a loan secured against your home • Professonial advice is an important part of the process
Things to Consider
Before you embark on Equity Release. There are other things that you should consider first, which may do a similar job, without borrowing against your home.
Below are some suggestions that you should think about before deciding to go down the Equity Release route. They are possible alternatives to raising money against your home.
Why you should phone us
We don't charge fees. We will listen to you. Talk to you, find out what you are trying to do.
Give our advice and honest opinion, send you quotes if required and then leave you to it.
At no point will you be under any obligation. We just want you to make the right decision for you.
Once you have all the information, we will leave you to decide your next step.
Why Use KIS financial solutions?
Before we talk about Equity Release. Let us tell you why you should use us.
- Fee Free
- we do not charge broker fees. If you go ahead then we will be paid a commission by the lender & that is it, We do not charge any addtional fees for our service.
- Experience - We have been offering Mortgage Advice since 1991 and lifetime Mortgages for the last 7 years, since the products became more competitive, flexible & we could see a benefit to our clients.
- Professional - We pride ourselves on looking after the best interests of our clients. This is especially important when Equity Release is involved. It is essential that all aspects are covered and also alternatives to Equity Release.
- Honesty - We are approachable. You can talk to us safe in the knowledge that we will be honest and help you to the best of our ability. If we feel there are alternatives to Equity Release, then we will tell you.
- No Hard Sell - We treat you, the way we like to be treated. That means absolutely 'no hard sell'. If you just want information, so that you can get yourself more informed, then that is what you will get. You won't receive follow up calls. We will simply leave it with you. If you decide it is something you want to move forward with, then you contact us.
What is Equity Release?
Your equity is the total market value of your home, minus any mortgage you may still owe. So basically, it’s the amount you would walk away with if you sold your home for cash.
But if you don’t want to sell your home, you may still be able to access a large portion of this money, by using an Equity Release mortgage, now often called a lifetime mortgage.
Equity release can provide you with a large sum of money to spend while enabling you to continue living in your home. It can be particularly useful for covering large expenses later in life, such as long-term care. However, there are downsides to accessing the value of your home in this way.
How does equity release work?
A lifetime mortgage will provide you with either a lump sum or an income, in exchange for part of the value of your home. This is achieved either using a type of mortgage, or by selling that portion of your home on the condition that you can continue to live there as long as you wish.
What are the different types of equity release?
The two popular types of equity release are
Lifetime mortgage
Home reversion
Lifetime mortgage
This is the most popular type of equity release. You borrow a lump sum in the form of a mortgage, which is eventually repaid from the sale of your home either when you die or move into long-term care. The amount you can borrow is usually between 18 per cent and 50 per cent of the property’s total value – typically the older you are, the more you can release.
The amount you owe will grow with interest, but you can sometimes reduce this by paying off the interest as you go, so it doesn’t compound (this is known as an ‘interest paying mortgage’). If you choose not to pay off the interest as you go, you will have an ‘interest roll-up mortgage’. In this case you will end up repaying more overall, as the interest will compound over time.
Most providers now offer a ‘no-negative-equity guarantee’, which means the debt will never be more than the sale value of the property. However, this could still mean that all the property’s value is used up in paying off the mortgage.
You may qualify for an enhanced lifetime mortgage if you have a serious health condition or an unhealthy habit, like smoking. This can enable you to borrow more, or to pay lower interest.
Home reversion
With a home reversion scheme, you sell all or part of your property, but with a legal right to continue living in it until you die or move into long-term care. The money can be paid to you either as a lump sum or as a regular income, whichever you prefer.
Whether you sell all or only part of your home, you won’t receive full market value for it, so bear this in mind when making your decision. Some providers of home reversion schemes require you to be over 60. Generally, the older you are when you take out the scheme, the more money you’ll get. Your state of health is also taken into account – being in poor health usually means getting a larger share of the value of your home.
What are the benefits of equity release?
The obvious advantage of equity release is that it gives you money to spend now, rather than leaving it locked away in your home. The UK’s long rise in house prices means that a large proportion of homeowners’ wealth is stuck in their property, and is therefore inaccessible. If your home has increased in value over the years, equity release enables you to get at some of that money to supplement your retirement income – instead of leaving it all to your beneficiaries, or to cover your long-term care costs.
What are the risks of equity release?
The main disadvantage of equity release is that it does not pay you the full market value for your home. You will receive far less money than you would from selling the property on the open market – although of course in that situation you would still have to find somewhere else to live.
Another downside of equity release is that it will reduce the amount of inheritance your beneficiaries could otherwise receive. The specific risks vary with the type of scheme you choose.
The risks of a lifetime mortgage
With a lifetime mortgage, you run the risk of owing far more than you borrowed when the time comes for the home to be sold – up to the total value of the property (but not more than that).
This is because a lifetime mortgage (like a regular mortgage) charges compound interest. If you don’t pay off the interest at regular intervals, the entire sum will compound – so at around 5 per cent interest, the amount you owe would double every 15 years. This is a good reason to be cautious of lifetime mortgages if you hope to leave a good inheritance for your family.
One way to reduce this risk is to pay off the interest as you go. Another option is to take out a series of smaller lifetime mortgages over the years. This way you will not be paying interest on the whole sum for the whole period of time, so the amount you end up owing will be less. Most products offer this facility these days and it's generally known as 'Drawdown'.
Another good reason to do this is that your money is better off invested in your home (where it is likely to grow) than in a cash bank account. Yet another is that having lots of money in your account may reduce the benefits you are entitled to, including help with the cost of care. The value of your home is not included in any means test as long as you are living there – but cash in the bank certainly will be.
Can I end a lifetime mortgage early?
You can choose to end your lifetime mortgage early, but this can cost you. If you’ve simply changed your mind, it’s important to speak to a financial adviser as soon as possible to work out the most cost-effective way of organising your finances. Even better, go over all your future plans with your adviser at the start, so you’re less likely to change your mind.
If you want to move home, you can keep your scheme running as normal. You’ll have to tell your equity release company so that they can decide if your new home is similar in value.
The risks of a home reversion scheme
The main disadvantage of a home reversion scheme is that you will only receive (usually) a maximum of 60 per cent of the market value of your home, and often much less (as little as 30 per cent). The home will also have to be vacated very quickly after your death, often within a month. This can be a large additional stress on your family, having to sort through your things and clear out the property in addition to arranging your funeral.
You also need to make sure that your home reversion contract allows you to move home, if necessary, and that there are no elements of the contract that could cause you unwanted problems or expenses further down the line. Ask both a financial adviser and a solicitor to study the contract for you to ensure that it is in your best interests.
With any form of equity release, have your mortgage broker explain the risks to you in detail, including how much it could cost your family in the long term, and whether downsizing might be a better option.
Am I protected when using equity release?
The Equity Release Council was set up to protect people from losing out from these schemes. Any equity release company that has the Equity Release Council logo on their material must ensure you can still live in your home until you die or move into permanent care. They must also ensure that you will never owe them more than the total sale price of your home, even if its value drops. You also have the right to ask a solicitor to check all the documents before signing up to a scheme.
Is equity release a good idea for me?
Whether equity release is right for you or not will depend on your circumstances. Some reasons to consider include:
- Your other savings and/or sources of income will not be enough to meet your needs in retirement
- You don’t want to (or can’t) downsize
- You don’t mind reducing your family’s inheritance (or you have no beneficiaries)
- Will releasing equity have an impact on benefits entitlement?
Some reasons to choose an alternative to equity release include:
- You can meet your income needs in retirement from other sources
- You have the opportunity to release money from your home by downsizing
- You want to preserve as much of your estate as possible for your family to inherit
When can I use equity release?
The minimum age for taking out a lifetime mortgage is usually 55. The minimum age for a home reversion scheme may be 60 or 65. However, releasing cash from your home at 55, should be considered carefully and discussed in detail with your adviser, as there may be more effective methods.
How do I set up equity release?
Your lifetime mortgage adviser can help you decide whether an equity release scheme is appropriate, or whether you should consider other options such as downsizing instead. Your adviser can also find the best one for you from the whole of the market and set it up for you. As an extra safeguard, have your solicitor check over the agreement you have with the equity release company before signing it.
No Broker Fees
Put very simply. It means that we do not charge any additional broker fees. That doesn't mean we work for free. Like all other brokers, we get paid by the lender if we submit business to them, we just don't charge anything over and above this.
This works for us because it means we don't have to spend as much on advertising, as the vast majority of our clients are recommended to us from people who have seen how we work and how it has worked for them.
In the world of Equity Release, not charging a broker fee is quite unusual. On your journey of exploring the possibility of Equity Release, you have probably been in touch with the 'big boys' of the Equity Release world. If you've done your homework correctly, then you will know that they generally charge a minimum fee of £1495 and also get paid by the lender. Quite clearly it is more advantageous if you don't have to pay a fee.
In particular, if you are only looking at releasing a relatively small amount of cash from your property, then being charged £1495 if you only want to release £20000 could put you off completely, or be an expensive option.
So, when you are deciding which Adviser to use, please don't be misled by statements like 'free inital consultation' & 'free review' Make sure that the whole advice process is 'Fee Free'
Find below a few useful Videos from Aviva & Canada Life that explains what Equity Release is all about and what it can do for you...
Just a few of the lenders we deal with....
Where to find us:
111 Bramston Street, Rastrick, Brighouse,
HD6 3AQ, UNITED KINGDOM
