The Equity Release application process

It’s all about listening. When you first talk to one of the advisers at our trusted business partner’s, you won’t be put through to an automated system or call centre.

You’ll be speaking to real people, most likely in an office somewhere near you.

They’ll want to hear about your needs and where you need help the most. They will also find out more about your circumstances. In this first conversation, they will:

• Discuss your current situation
• Outline how they can help
• Ask you about your age, health and lifestyle, house, income, and other loans or schemes you might have in place already
• Make some initial suggestions, and maybe estimate how much you might be able to release
• Answer your questions and deal with concerns

Just like a mortgage application, you will need a solicitor further down the line to tie up the legal paperwork and handle the cash transactions.

You might already have a solicitor, and that’s fine. But, if you’re unsure where to go, they will be happy to recommend firms they regularly work with. Typically, the trusted solicitors will also have experience with Equity Release applications.

If everyone feels comfortable, then they can progress to the next stage.

Next, they’ll set up an appointment where they can go over everything in more depth. Here they can work out what will be the best way forward for you.

This is usually best done in a face-to-face meeting. Although, they can do it just as easily over the phone or via a video call.

This stage is usually broken down into two appointments. The first is to really get to know you and understand your needs. During the second appointment they will show you which options will work best for you.

Getting to know you

The aim in the first meeting is to see what you need to get out of the Equity Release scheme. Your adviser will go into the details about budget, time scale and any particular terms that might apply.

They want to get to know you and discuss your priorities. They’ll also continue to talk about your income, outgoings, debts, health and lifestyle – like they did in the initial call.

They’ll want to find out your needs for now and in the future, allowing them to budget for how much you need to spend. This also helps them see whether a lump sum or Drawdown Equity Release plan will work best.

Research

Armed with this information, they’ll go away to do their research and work out which schemes will be suitable for you.

There are many Equity Release products on the market, each with different terms, conditions, incentives, and interest rates.

They need to find the one that ticks all the boxes and releases the money from your property in the most efficient way possible.

Giving you the options

In your second meeting, they’ll recommend an Equity Release scheme and explain their thought process. Whether you go ahead or not will be up to you, but they will make you aware of the pros and cons of the contract.

By the end of this meeting, they will have worked out a plan that you’re happy with.

What if you’d like family members to be at these meetings? That is absolutely fine. It’s better for everyone’s peace of mind if they get to know the adviser and see why they are presenting certain options. And if they do have any questions, the adviser will have the opportunity to put their minds at rest.

Remember, our business partners don’t charge for these meetings. If you decide not to go ahead with Equity Release, then you won’t owe them a penny.

When you have chosen an Equity Release plan, your adviser will send you a personal suitability report. The report sets out what they recommend for your current situation and also your fully personalised illustration of your plan.

This will also explain all the benefits, risks, costs and schedules of the scheme.

They’ll then complete the Equity Release application form and send it to the provider. In turn, the lender will assess your application, get credit references, and arrange for someone to value your home.

If the lenders are satisfied with your application, they’ll send their loan offer to you, your solicitor, and adviser.

If everyone is happy and everything is in order, your solicitor will tie up the legal documents. You are now on your way to getting your money.

When the documents have been finalised, the lender will complete their instructions. From here, the tax-free funds will be released to you through your solicitor.

At this point, the fees for the solicitor and your broker fee will be deducted.

Many brokers charge a percentage of the loan amount, but our trusted business partner’s simply charge a set, flat fee. This way you always know where you stand.

Again, this is only payable upon completion. So if you don’t go ahead with the process, you don’t owe them anything.