Finding The New Administrators Of Northern Rocks Equity Release Mortgage Book

By Mark Gregory on September 30th, 2013

Papilio UK equity northern rockIf you are one of the old benefactors of Northern Rock Equity Release then you should be aware that Northern Rock do not write new equity release business any longer. This doesn’t means that your deal is over but in fact, they have sold off their equity release mortgage book to Papilio UK Equity Release Mortgages Ltd who are now responsible for managing all those old completed cases which were originally taken out with Northern Rock Equity Release.


There was a time when Northern Rock stood nothing less than the other major equity release lenders such as Aviva, Portman Building Society, Hodge Lifetime and even In Retirement Services. They got in deep trouble with the credit crunch that swept the financial world leaving them as one of the worst affected. After the large scale off in March 2012, Papilio UK Equity Release became the new administrator, who are now handling all the enquiries of customers belonging to Northern Rocks equity release book.


If you are trying to enquire about taking some more cash from your home equity loan which was originally offered by Northern Rock, then you must know that the new Papilio administrators don’t allow you to take any further loans on your home. Apart from that, you might be shocked to hear that the rate of interest that you are paying to them is approximately 1.3% more than what the other lenders are offering in current scenario’s. Therefore, rather than struggling on thinking your bridges have been burnt, get some financial advice on this matter.


Considering the power of the compounding interest, you should consider the potential savings you could make by switching to another equity release lender who is offering a much better rate of interest.


An equity release remortgage is therefore one angle that should be explored further. This option could be exercised as it not only promises you a huge saving on interest in the long run, but also the new lender may be able to assist with further borrowings on top. Therefore you can opt for an immediate release of equity or even have a cash reserve to be accessed at any time in the future via a drawdown lifetime mortgage basis.


If you are worried about repayment and other miscellaneous charges on account of closure of your original Northern Rock equity release mortgage then take a breath of relief. The total set up cost to switch over is not as much  as you might anticipate. An equity release remortgage is becoming more commonplace these days as the over 55’s with existing plans are striving to get the best equity release deals.


Currently, Papilio are letting customers go with NO early repayment charge given that they wish to reclaim their initial investment. You can find many current equity release brokers offering free advice and free valuations as well as cashbacks up to £1000 upon the remortgage of your property. Looking diligently, you can even strike on the interest rate as low as 5.62% per annum. Click here for the latest equity release deals.


With interest rates never been so low & having the security of fixing them at today’s rates for life, never has there been a better time to review your old Northern Rock lifetime mortgage. To find out how much you could save by switching your old equity release for new, use the Compare Equity Release FREE Switch Plans tool.


Call 0800 678 5169 if you require further assistance about contacting Papilio UK Equity Release Mortgages Ltd.

Compare Equity Release & Access Lower Interest Rates than Aviva Direct

By Mark Gregory on August 18th, 2013

Aviva Equity ReleaseGoing direct to Aviva for your equity release scheme, rather than shopping around through an independent website such as, will actually cost you more in the long run through the interest rate you receive.


By looking around at what an independent equity release websites such as can offer, you are to get a better deal than you can when dealing with Aviva Direct.


Opening up the market

As the equity release market has grown and developed, independent brokers have ensured that competition is keeping the cost to customers down. Whereas if you only speak to the lender themselves they will give you a list of just their own deals, they know if you go through an independent they will show you all the offers on the market. This means that they have the incentive to offer better rates which comparison sites such as have identified to encourage more business.


The cost of interest rates

Interest rates always look so small when they are just a number. The difference of a couple of decimal points seems insignificant, but over time that tiny increase can cost you thousands.


When applying for one of Aviva’s market leading equity release schemes, sometimes the difference between the deal you would get buying directly from Aviva and the deal you can get through can be as much as 0.25%. Now that doesn’t seem like that much when you look at it, but that small difference could end up costing you, the customer, £1000’s over the years of your deal. With the amount of cash you can release from your property, 0.25% builds to a significant amount.


Flexible Pricing

The best equity release sites, such as, have the ability to give you a far more flexible approach to getting you the best deal from Aviva. When Aviva’s direct sales team were encouraged to sell you standard deals that help them cover their own costs, an independent equity release company can access the Aviva Flexible Pricing Tool to make sure that you are always provided with the best deal for you.


Everybody has a different situation. Factors such as your age, health, size and condition of your property and the amount you want to release are all part of the overall picture. And you are an individual. Take a look at the house next door. Is it the same as yours? It might have been on the day they were built, but now that house is more than that. It’s your home. You’ve spent years making it what it is. Your property is as much a part of you as your neighbour’s is a part of them.


Independent equity release sites such as recognise that, and know that the best deals can only be achieved by taking this into account. Looking at your personal criteria and using Aviva’s Flex Pricing Tool they can ensure that you always get the best deal for what you need. They can inform you which company offers the lowest deal, highest lump sum, biggest drawdown facility or even offer the most flexible plan in terms of lifetime mortgage early repayment charges.


Getting the rate that suits you

Even though you might want the great deals offered through Aviva, sometimes there are different rates available for different people. can make sure that you find the one that best suits you. In order to cover the costs of maintaining their own direct advisory and sales team, Aviva will were forced to offer you higher rates than you could get through an independent advisor. This is why that from 1st July 2013 Aviva are closing down their direct equity release service. It just isn’t cost effective any longer.


They will now panel out any enquiries made to the Aviva head office if one requires equity release advice. Unfortunately, the deal offered thereafter won’t be as competitive rate as that offered through independent firms such as Compare Equity Release. You will pay a premium.


So if you want to take advantage of the best deals from Aviva, such as the Aviva Flexible Lifetime Mortgage Plan or Aviva Lump Sum Max then visit the website and find out how much you can save and how to then proceed with your money saving application.


To obtain a competitive Aviva equity release quote call the team on 0800 678 5169 or contact us here.

New Era for Retirement Mortgages As Hodge Lifetime Enter the Fray

By Mark Gregory on August 2nd, 2013

Hodge Lifetime Retirement Mortgage PlanHodge Lifetime today launched another pioneering retirement product aimed at capturing the needs of interest only mortgage holders who have NO repayment strategy in place.


The Hodge Lifetime Retirement Mortgage Plan is aimed at people between ages 55-70 who wish to borrow upto 50% of their property value. The money can be used for any purpose, however Hodge have designed the product with a rescue package in mind.


The Hodge Rationale

The Hodge Lifetime Retirement Mortgage Plan has been designed with the former Halifax Retirement Home Plan in mind, which was withdrawn late in 2011. With similar features & basis for lending, the new Hodge Plan is the first product since the Halifax Lifetime Mortgage that will offer an interest only lifetime mortgage based on income criteria.


For those with only a limited time to repayment off their interest only mortgage, the Financial Conduct Authority (FCA) state there are 2.6 million interest only mortgages maturing before 2030. Of these, 10% have no repayment strategy in place & with the average mortgage balance being over £50,000, the extent of the problem cannot be underestimated.


At the point of demand for repayment of their mortgage, people currently have limited options other than downsizing or remortgaging onto another mortgage. The first option may suit some, but not all. The second has proven difficult, as lenders have reigned in their retirement mortgage book after guidelines laid down by the FCA.


How Hodge Can Assist

A retirement mortgage is a loan secured on your main residence which runs throughout retirement. Hodge’s new Retirement Mortgage will remove all the concern over the eventual repayment of the mortgage, as it only requires repayment upon death or long term care.


Therefore, for someone leading upto retirement with a pressing need for repayment, could seek independent mortgage advice and see whether it would be best advice to remortgage onto the new Hodge Plan. This would effectively remove the short term mortgage need & switch over to a lifetime mortgage providing a lifelong secured loan on their home.


Scheme Criteria

Hodge use pension income as the basis for the borrowing calculation. With a cautious approach in light of the Mortgage Market Review (MMR) in April 2014, Hodge will only accept the following forms of income towards the affordability calculation: –


  – Basic State Pension

  – Defined benefit pension scheme

  – Defined contribution pension scheme

  – Annuity in payment

  – Income drawdown arrangement

  – SERPS or S2P


Stability of income is key to Hodge lifetime, with the necessity of the income being paid on a level, or preferably an escalating annual basis. Hodge underwriters will assess applications on a case by case basis, subject to income & a good credit history. Combining both factors will determine the size of the release.



The Plan In Practice

Once the loan size has been determined, payments of monthly interest will then be made to Hodge which covers the interest charged. This has the effect of maintaining a level mortgage balance & will continue until age 80.


The initial interest rate offered is a 5 year fixed rate of 4.75% (5.1% APR).


Therefore, as an example borrowing £50,000 on the Hodge Retirement Plan would initially cost £197.92pm. Once the 5 year fixed rate has expired, the standard variable rate would commence, however there would be the option of taking another fixed rate at that time.


On reaching age 80, a decision will be need to be made as to whether monthly payments will continue, or they wish to be stopped. Ceasing payments will result in the plan reverting to a traditional roll-up equity release scheme, where the balance will increase annually.


The plan eventually ceases either on early repayment or after the last surviving planholder has died or moved into care. The property will then need to be sold in order to repay the mortgage debt, with any surplus funds passing to the beneficiaries.


Additional Features

 – Early repayment charges – are fixed over a 5 year period. They start at 5% in the first year reducing yearly down to 1% in year 5. There are NO penalties applicable after the 5th year.

Flexible Repayments – Hodge will allow 10% extra capital repayments over the initial 5 year period with NO penalty.

Loan Size – minimum £20,000, maximum £500,000

Property – must be in England, Wales & Scotland & have a minimum valuation of £100,000

No Negative Equity Guarantee – included at no extra cost & ensures the loan can never be more than the property value



The Hodge Lifetime Mortgage plan opens the door for those who have sufficient disposable income in retirement to comfortably maintain payments on their mortgage. It will particularly benefit those between the younger ages of the product criteria. Where usual interest only mortgage schemes from Stonehaven & more2life will only lend based on age.


The limits are invariably low on these two types of interest only lifetime mortgage schemes.


For example, the current maximum loan-to-value at age 55 with Stonehaven is just 19%. Compare this to the new Hodge Plan whereby if sufficient income is proven, then upto 50% of the property value can be released. On a £300,000 property the difference could be upto £93,000.



To discuss eligibility for the Hodge Retirement plan or request a mortgage quote please call the team on freephone 0800 678 5169 or click here for further information.


This is a Lifetime Mortgage.  To understand the features & risks, please ask for a personalised illustration.  Your home maybe repossessed if you do not keep up repayments on a mortgage.


Newlife Resurrect Equity Release Schemes on Buy-to-Let Properties

By Mark Gregory on April 30th, 2013

newlife mortgages buy-to-let equity releaseThis week saw the rebirth of a special buy-to-let equity release plan not seen for the past two years.


Newlife mortgages have relaunched their popular Landlord Lifetime Mortgage plan, aimed at helping landlords release equity form their buy-to-let property portfolios.


The major advantage of this unique form of equity release loan is the fact landlords do not need to sell in order to raise this cash and it can help defer capital gains tax during the process.


Newlife have also extended the 2nd property equity release theme onto holiday homes and holiday cottages which are used for family purposes. Both types of these equity release schemes add variation and build upon the strength and flexibility being shown in the retirement mortgage market.


Landlord scheme in detail

Based upon the established principle of the roll-up lifetime mortgage, it helps landlords over the age of 55 to convert the equity in their second home into tax free cash. This type of mortgage requires NO monthly repayments and only needs to be repaid on death or when the house is sold, if earlier.


The buy-to-let property must have a minimum valuation of £150,000 and be located in England or Wales. The minimum initial equity release loan amount is £25,000 and this can only be taken on a lump sum basis. Further top-ups can be taken in 3 years time in amounts over £10,000.


A portfolio of upto five investment properties can be utilised subject to a maximum lending limit of £250,000. To calculate how much can be borrowed you need to provide both the property value and the age of the youngest applicant. Loan-to-values start at 13% for some aged 55, increasing by 1% each year thereafter upto an overall maximum of 42% of the property valuation at age 85+.


Should there be an existing mortgage on the rental property then this will need to be either repaid prior to application of the landlord loan, or be paid off from the equity release proceeds on completion.


Newlife help buy-to-let investors financially

The fact there are no monthly repayments means that retired landlords can increase their retirement income with this buy-to-let equity release mortgage.


Some examples of where the landlord buy to-let equity release plan can help are: –


  1. By repaying an existing interest only, or capital and interest mortgage, there will be no further monthly payments to make. Instead this money could then be used towards their retirement expenditures.
  2. The capital lump sum can be used to supplement pension income. One investment this could be placed into is an annuity. By placing the tax free lump sum into a pension annuity would convert the release of equity into income. Should ill-health persist then an enhanced annuity could be purchased, thus providing even more income.
  3. By NOT having to selling the rental property means the landlords beneficiaries can still benefit from any escalation in the value of the property in the future. Additionally, by not having to sell means the avoidance of potential capital gains tax on ownership of a 2nd home.
  4. The interest charged on the landlord scheme can be offset against income tax due on the rental income received.
  5. For higher rate tax payers the savings can be even more significant. The Newlife mortgage scheme takes advantage of the fact that profits in the eyes of the revenue are only revalued on death.  Therefore, when the rental property is transferred into the landlord’s estate on death, the capital gains tax (CGT) is only due once the property is eventually sold. This could be 12 months later. At that point CGT is only due on any escalation in the property value since it passed into the estate. The property has effectively & potentially been transferred CGT free.



As the recent financial news has stated, 2013 is seeing the biggest rise in the popularity of equity release schemes. Therefore, such plans as Newlife mortgages first and only buy-to-let equity release plan can only enhance the growing flexibility and captured marketplace being exhibited.


For landlords interested in equity release on their rental properties call 0800 678 5169 or click the following link to request a buy-to-let equity release quote.


Hodge Flexible Lifetime Mortgage Plans Explained

By Mark Gregory on April 30th, 2013

julian-hodge-bank-logo_200x115Hodge Lifetime has been an important player in the retirement finance sector since 1965, and has been providing equity release products and pension annuities. During the credit crunch when many lenders withdrew, or reigned in their mortgage book, Hodge opted for a different strategy.


With foresight & vindication that financial strength was imperative for durability in this competitive market, Hodge began to build up its annuities book. It considered some of the strongest & sustained players in the equity release market such as Just Retirement, Partnership and Aviva all had equity release plans fully, or partial funded by its annuities books. By gaining receipts from pension funds, such equity release companies can re-lend these monies out on equity release terms.


Therefore, over two years ago, Hodge toned down its equity release book, remained uncompetitive, albeit if needs must, their Shared Growth Option Home Reversion scheme & its basic lifetime mortgage plan remained. However, with this new approach they also started building its annuity book, with one eye in the future to re-enter the equity release schemes marketplace.


In 2012, once they had adequate strength, Hodge Lifetime launched its new product range; the first being the Hodge Lump Sum Lifetime Mortgage. A product, with new innovative features, that took the lifetime mortgage market by surprise and was welcomed wholeheartedly by equity release advisers. Following this initial product launch, Hodge then followed up the lump sum plan with its drawdown lifetime mortgage scheme which in conjunction with the new product features, now placed in amongst the higher echelon of drawdown product providers such as Aviva & Just Retirement.


Hodge Lifetime Background
Today, Hodge remains one of the leading names in the equity release sector. Hodge Lifetime is 100% owned as a subsidiary of Julian Hodge Bank Ltd, which in 1987 received authorisation status under the Banking Act. These parts of the Julian Hodge Bank form the group of companies originally founded by Sir Julian Hodge.
Backed by Hodge Lifetime is currently one of the leading providers offering a flexible repayment option on their lifetime mortgage products. Drawdown lifetime mortgages are becoming increasingly popular as they offer flexibility and a way to have more control on how and when the mortgage is repaid.


Market Leading Products
The Hodge Flexible Lifetime Mortgage is an equity release scheme that allows an initial cash lump sum release, followed by optional cash withdrawals in the future. Its main USP is the flexible repayment option that it offers – whereby you can make repayments of 10% of the original lump sum borrowed, and an additional repayment of 10% of further cash withdrawal each year. For those people who cannot commit to the regular monthly payments of Stonehaven’s Interest Select or more2life’s Interest Choice Plan, Hodge allow for ad-hoc repayments whenever the time is right for you.


This allows exceptional control over how and when the loan is repaid. The most important advantage of the Hodge Lifetime mortgage is that there are no ERC’s (Early Repayment Charges) for repayments within these set limits, making it quite unique in that respect.


In addition to this flexible repayment option, this equity release mortgage also offers an important downsize protection clause – whereby there will be no early repayment charges if you repay the entire loan amount after 5 years, as long as this is done as a result of selling your home & downsizing. This makes Hodge’s Flexible Repayment Plan perfect for those who plan to sell their property after a few years, but need additional funds in the meantime.


Applications in life
Any older people find it necessary to downsize at some point, but want to postpone it to a later date due to a variety of reasons. For instance, people may need the additional space for the grandchildren when they stay over, and may plan to sell a few years down the line. The Hodge Lifetime plan offers the flexibility to do exactly that, with no early repayment penalties.


Qualifying criteria
Hodge’s Flexible Repayment Plan is available for people 60 years and older. The minimum property valuation is £100,000 and the maximum is £1 million. More expensive properties are also accepted on referral. The mortgage is currently available in England, Wales and mainland Scotland.
Hodge Lifetime is unique at the moment, in the flexible repayment terms it offers, as well as its no early repayment charges policy for repayment after downsizing.


To request a Hodge Lifetime quote click here, or to request further information call freephone 0800 678 5169.


*The Hodge Lifetime Plan now comes with a free valuation upto £300,000.


Understanding the Different Types of Equity Release Schemes

By Mark Gregory on March 18th, 2013

arrowEquity release schemes have proven to be increasingly popular in recent times. So what do equity release schemes actually do? How do they work? And what are the different type of equity release schemes available today?


Equity release is essentially a way to tap into the value built in your property without having to sell the house and move out. It allows home owning retirees to access the equity in their home in the form of usable cash. Whether it is for a one off expense such as a home improvement project, or a holiday, or to supplement your monthly income, equity release can be a flexible tool that allows you to optimise the value of your home.
There are two main types of equity release schemes – home reversion plans and lifetime mortgages. A lifetime mortgage is a mortgage with no fixed term, that only ends upon death or when you move into permanent long term care. There are different types of lifetime mortgages, and they differ from each other in the way they work, as well as in their eligibility criteria.


A lifetime mortgage is essentially loan. The loan is repaid when the house is sold, which is done only when the term of the mortgage ends. The interest on the mortgage is either repaid every month in part or full, or rolled up and added to the principle amount. Lifetime mortgages in which only the interest is repaid every month, are known as interest only lifetime mortgages, such as More2Life’s Interest Choice Plan or Stonehaven’s Interest Select Plans.


Interest only lifetime mortgages can be suitable for people who want to release some equity and can afford to make monthly interest payments. In fact, many people still disappointedly still searching for the Halifax Retirement home Plan have found these two interest only lifetime mortgage schemes as life savers due to Halifax no longer lending on their retirement home plan. By making regular and full monthly interest payments, you have the option of keeping the end balance owed level and knowing exactly how much of your equity will go to the lender when the mortgage ends. This is great news if you want to protect your children’s inheritance.


Roll up equity release schemes are where the equity can be released as a lump sum or by future withdrawals, and no monthly repayments need to be made to the lender. The interest is rolled up into the loan amount, and so the interest is compounded each month or year depending on the lender. The final amount owed is only repaid when the term ends and the property is sold. Roll up equity release can be a suitable option for those who need to access the equity in their home, and do not wish to make any monthly repayments. They usually are not as concerned about how much equity remains at the end of the day.


Equity release lifetime mortgages also differ in the way the money can be released. It can either be released as a lump sum, as monthly payments, as a combination of both, or as and when you need it. Lifetime mortgages that allow you to release a lump sum and make further releases as and when you should need them are known as drawdown lifetime mortgage schemes.


The second main type of equity release schemes is home reversion plans. Home reversion, unlike a mortgage, involves selling a proportion of the property to the equity release provider. The amount you release is in effect the payment for the portion of the property sold. The provider recovers this amount when the property is sold, which is upon death or when you move into permanent care.


Although it involves selling a portion of the house, this has no impact on your right to continue living in your home. You retain the right to live in your property, rent free, for as long as you live or until you move into permanent care. This is achieved by the implementation of a lifetime tenancy agreement. When the property is sold, the provider gets their fair share of the sale value of the home, depending on the percentage of the home that was sold when the plan started.


Lifetime mortgages and home reversion are the two main types of equity release schemes. There are a number of equity release providers offering plans within these two sections and a simple search on any good comparison site can help you find them. Many comparison sites also offer online equity release calculators that can help you understand how much you can borrow with each plan, as well as the terms of lending for each plan.
For a quote on a lifetime mortgage or home reversion call 0800 678 5169 and speak to one of our specialists.


Is it Possible to Compare the Equity Release Market as You Would Other Financial Products?

By Mark Gregory on February 27th, 2013

switch-equity-releaseThe short and simple answer to this question is a resounding yes!


Just as we have all become accustomed to comparing financial products such as car insurance and personal loans, so too can you now get online to search and compare the equity release market.


In fact, given the current equity release interest rates on the market, even if you only had the possibility of such a plan in the back of your mind, now might be the time to investigate the matter further. This is because if you were to act now, you are more likely to lock yourself into one of the best deals available for around 5 years and this same great rate would stay with you for the duration of the plan.


If you are at all interested in the idea of an equity release plan, do yourself a favour and get yourself onto websites that offer the compare equity release schemes features.


A great example of these equity release comparison websites is the new Compare Equity Release website.


Unlike most equity release companies providing information, Compare Equity Release help those looking to conduct their own initial research & learn for themselves. Many websites on the internet portray themselves as providers of equity release information. They are basically lulling people into providing their personal details with no information coming back their way online.


For instance equity release calculators. None of the major equity release brokerages who supposedly offer a 2 step process actually provide an answer to the calculation of the maximum equity release possible. Instead they will get a representative to call you back. People do not always want this service as they are quite capable with the right tools to ascertain the information for themselves. Only one authorised intermediary – Equity Release Supermarket will actually offer an answer online; plus they go one step further by providing the maximum lump sum should you suffer from poor health.


This is where Compare Equity Release sees themselves as the pinnacle of reference to all things equity release. By providing the tools & information that potential equity release applicants require they can assist in the decision making process. With this information available, Compare Equity Release feel that trust can be established with their clients & will lead to the customer approaching them for the best equity release deal in the market.


Indeed with the plethora of exclusive deals already at their disposal it would be worthwhile visiting their Equity Release Deals section to see the current interest rates, cashbacks & free valuations they currently receive from the major equity release providers such as Aviva, Just Retirement, Stonehaven, LV=, Partnership & many more besides.


Some of the equity release tools Compare Equity Release have created are unique & at the forefront of the equity release market.


The main tools are the two equity release calculators; both measuring the maximum release possible on both a roll-up lifetime mortgage & an interest only lifetime mortgage.


The equity release calculators and are a free, quick and simple way of ascertaining the best release of equity in relation to your personal details. The best bit is that at this initial stage, you need only insert some very basic information in order to get the ball rolling. As stated previously you do not have to submit these details in order to get the answer you are looking for. The calculators provided provide answers to: –

  • The maximum possible lump sum on a standard roll-up equity release scheme
  • The maximum possible lump sum on an enhanced (ill-health) equity release scheme
  • The maximum possible lump sum on an interest only lifetime mortgage

Compare Equity Release also provide a ‘Sourcing Wizard’ that by answering a few simple questions regarding the type of scheme you are looking for, they can narrow down your options. This can save both time & expense as you then have an idea of the kind of scheme that can suit. As any equity release plan requires advice, Compare Equity Release can then provide a qualified & experienced local equity release adviser who can then ‘fine tune’ your plan for you. This experience will have gained through this exercise will have provided you with an insight into which equity release schemes are relevant & why.


If you have existing equity release scheme, just like a conventional mortgage, it may pay to shop around for a better deal. The Compare Equity Release ‘Switch Plans’ tool assists you deciding whether this would be financially viable. You may wish for a lower interest rate, a desire to switch to a more flexible plan for the future such as a drawdown lifetime mortgage or also to borrow extra funds. Older equity release schemes, particularly 5-12 years ago did have interest rates that were over 7%. Considering interest rates can now be as low as 5.92% on the Aviva Lifestyle Flexi plan, it could save £1000’s over the many years to come due to the compounding effect of the interest.


Coupled with the array of exclusive deals that Compare Equity Release receive such as free valuations offers, cashbacks of upto £500, no application fees then switching plans may never have been better.


The trained & experienced Compare Equity Release advisers have the knowledge of whether switching plans would be best. The ‘Switch Plans’ facility on the website allows you to input your existing scheme details & compare this to the best equity release rate currently available. This is purely a guide but it can provide an indication of the long term savings for you & your beneficiaries can benefit from.


Sites such as Compare Equity Release will offer you a myriad of lifetime mortgage & home reversion information which will help to put your mind at rest if there are certain aspects of the equity release UK market which still do not make complete sense. If this is the case, please don’t worry, you are far from being alone. This is why these sites are set-out in the way they are: there are always sections of the site that will explain the different types of equity release plan available and this, in turn, should help you to decide which option is best for you.


It is always recommended that you familiarise yourself as far as possible with the concepts of the equity release market before taking that serious step to commit yourself to such a plan. Legislation and industry-wide regulations are in place to ensure that as a new company, the details of such a policy are clearly explained to you and it must be shown that this is so.


Compare Equity Release advisers offer independent advice on the whole of the equity release market. To assess whether you qualify, discuss or book an appointment call the team on 0800 678 5169 or email

Can My Parents Release Equity if I Have a Power of Attorney?

By Mark Gregory on February 4th, 2013


Longer life spans, rising costs of living and increasingly expensive care costs have undoubtedly contributed to the growing popularity of flexible financial planning tools that allow people to optimise their financial resources during retirement. Many people face the prospect of insufficient income to meet the costs associated with retirement, and this leads them to turn to products like retirement mortgages and equity release for a solution.


A common reason to release equity from a house is to meet the costs of long term care. It is possible to nominate someone you trust to take decisions related to releasing equity on your behalf should you not be in the mental or physical capacity to do so. The legal document used to make such a nomination is a Power of Attorney (PoA).


There are two different types of Power of Attorneys and the type of PoA and the time that it was made will determine whether your parents can release equity through you and what it will take to set up a plan. New regulations came into force in October 2007, which have impacted the way PoAs taken out before this period function.


Before October 2007, an enduring power of attorney could be made to manage the affairs of someone who is mentally incapacitated and this document could be put in place before any incapacitation was apparent. Making an Enduring Power of Attorney post incapacitated was a lengthy process that required the court of protection to issue the Power of Attorney.


Since October 2007, the Enduring Power of Attorney (EPA) has been replaced by lasting power of attorney and it is no longer possible to make a new Enduring Power of Attorney. If you have an existing EPA, it still stands valid. However, a lender will need to see the original PoA document or a certified copy with original signatures. Reasons for equity release will also need to be verified.


Post October 2007, a Lasting Power of Attorney will need to be made to nominate someone you trust to make decisions on your behalf. There are two types of LPAs, LPA for personal welfare, and LPA for property affairs. An Lasting Power of Attorney for property affairs is required to set up an equity release plan.


When it comes to equity release through a nominee, lenders will essentially need to see that the capital is to directly benefit the beneficiary of the plan. While some lenders are more stringent and may have additional safety measures in place to ensure the authenticity of intentions, others may not be so. Sight of the fact that the PoA has been registered with the Court of Protection is also vitally important with any equity release application.

What Benefits Can an Independent Financial Adviser Bring to the Equity Release Market?

By Mark Gregory on January 29th, 2013


Independent Financial AdviserAnybody who has had the time to research about equity release will know that it’s a relevantly straight forward product; however a mistake in choosing the correct one could prove extremely expensive for the applicants & even their beneficiaries. There are different schemes and options to understand that may create multiple misconceptions or answers that may not be in your best interest. Therefore, an Independent Equity Release Adviser may be your solution.


An Independent Equity Release adviser is a highly trained expert approved by the FSA (Financial Services Authority) to provide the highest quality of information that will allow retirees looking towards equity release, to gain vital information that will best help them in choosing their path to financial freedom in retirement. An equity release adviser is only a phone call away from answering all your necessary questions which should initially be free of charge. You can even check the FSA register to ensure the company they represent are officially registered.


However, if you’d like a more personal touch, a meeting could be arranged where you could meet face-to-face and in the comfort of your own home. This initial meeting would involve a discussion around your current situation and thereafter your financial requirements. Your adviser would then usually have sufficient information to conduct appropriate research from the whole of the equity release market. This would involve establishing your needs and finding the best equity release scheme; be it a lifetime mortgage or home reversion. Even then, once the right scheme is ascertained, the next stage would need to begin, which would be to find the individual type of lifetime mortgage or home reversion scheme that is best suited. Once found, then your equity release adviser can request the equity release quotes from the provider concerned. Upon receipt & at the next subsequent meeting they can then run through and explain their recommendations including quotes.
You may be asking – ‘other than a source of information, what else can an independent equity release adviser do for me?


This is where the real advantages begin. As they are of course independent they have a wide open market to choose from rather than say an Aviva or Prudential financial adviser helping you. This is due to the fact that Aviva or Prudential will obviously try to gently persuade you into choosing one of their products and schemes. This may not always be best advice, nor will you necessarily receive the best deal.
Furthermore, as equity release companies want your business and due to the fact that the cost of getting their products to market and selling them is cheaper via an independent adviser, then they can pass on these savings in the deals they offer with them. These savings arise because they do not have to pay directly only for the independents services. With an Aviva adviser, Aviva have a basic salary of approx £30,000pa to pay, plus bonuses, company car, pension scheme, mobile phone, life assurance etc. This is all reflected in the pricing of their products. Whether it’s their Flexible Drawdown plan, Lump Sum Max release or Enhanced Equity Release plan the interest rates & offers are generally less competitive direct with Aviva.


This is therefore the reason why buying the same, they can usually provide independent equity release advisers ‘special’ interest rates and deals such as free valuations & cashbacks to the client to help choose their product. So with multiple providers offering exclusive rates to IFA’s it then creates a much more competitive market which proves why you should always shop around to find yourself the best deal that suits your needs. After all, this decision will potentially affect you for the rest of your life.


This all sounds very promising but are there any costs involved in using an Independent Equity Release Adviser? Initially there should be no costs. All meetings, information and quotes are typically free with no obligation which is great. Nevertheless, if you choose to advance with a product selected through an intermediary then there is a fee of around £795 upon completion. This may seem a little daunting but if you consider that you have just chosen an exclusive rate that is only accessible through your independent adviser, that will save you thousands of pounds by finding you the best rate then this fee instantly becomes a very small drawback.


To find an Independent Equity Release Adviser locally to you, please click here, or alternatively call 0800 678 5169 to arrange a convenient appointment.


Follow Compare Equity Release’s author Mark Gregory on LinkedIn.


Promised Equity Release Leads & Still Waiting? Equity Release Jobs Found Here…

By Mark Gregory on January 29th, 2013

jobsEquity Release Sales Opportunities –

29th Jan 2013


Have you been promised equity release leads & still waiting…?

Is the quality of your leads that poor, conversion rates are left wanting..?

Having to travel the length of the UK to meet potential clients..?


A solution – New equity release jobs now available from one of the leading equity release brokerages in the UK.


These new sales roles opportunities are situated in the south of England!

  • Leads provided!
  • Back office support!
  • Unlimited earnings potential!


Compare Equity Release in conjunction with its partner site is advertising this new equity release sales role opportunity.

For further information follow this link – or call 01925 830816.



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