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Equity Release Referral

Available to homeowners over age 55 with significant equity but who cant borrow through conventional lending due to lack of income or bad credit.

Select your preferred referral method below. In both cases the entire sale and advice is dealt with so you have no additional work or compliance risk


Click Option 1. Average commission £1000 mainly telephone and postal sales
  • Guaranteed no cross selling – No Home reversion plans
  • Check clients meet criteria and just provide names and contact details - we can call you or
  • your client – let us know what you prefer

Or

Click Option 2. Average commission £500 mainly face to face sales
  • Check clients meet criteria and send us a completed enquiry form – the advisors will contact your client directly.

What is equity release?

Equity release allows your client to release some of this cash tied up in their home, for them to spend on whatever they like. Equity release plans are available to homeowners aged 55-95. It can be a good way to supplement income if, like a growing number of people, they find themselves 'asset rich but cash poor'.

Main features of equity release

  • Receive a tax-free cash lump sum or draw down the money in stages.
  • Typically no monthly repayments.
  • Freedom to spend the money in any way they choose.
  • Stay in their home for as long as they choose – for the remainder of their life, or until they move into long-term care.
  • The value of the estate will be reduced.
  • Entitlement to benefits may be affected, but their adviser will be able to check this for them.
  • No Credit checks and no income criteria

Popular uses for equity release include:

  • Clearing any outstanding mortgage
  • Paying off outstanding debts
  • House purchase
  • Home and garden improvements
  • Helping children and grandchildren
  • Buying a holiday home

How much cash can be released and who qualifies?

How much cash your clients can release depends on how old they are and how much their home is worth. There are limits to how much cash can be raised through equity release - the older they are, the more cash they can release from their home. Enhanced plans may allow your clients to generate even more cash by taking into account their health conditions and lifestyle choices. Examples include health conditions such as diabetes and lifestyle choices such as smoking. Below is a guide showing typical loan to values; excluding any lifestyle choices or health conditions your client may have;

Age LTV
55 19.50%
60 24.50%
65 29%
70 35%
75 40%
80 46%
85 51%
90 51%

What criteria do my clients need to meet?

Clients must generally fulfil the following criteria:

  • Aged 55 or over.
  • Own their own home.
  • Their home must be worth a minimum of £70,000 and be in a good state of repair.
  • Any outstanding mortgage must be repaid with the cash released or from other funds.
  • They must live in the United Kingdom and the property must be their main residence.
  • The client must not live in a non-standard home such as a park home.

Additional points to consider, these may vary depending on the choice of provider

  • Customers can be fully retired or still working
  • Plans are always based on the youngest age
  • Lending based on the property value rather than income.
  • Property type, Tenure: Freehold and Leasehold can usually be accepted however a minimum lease may be required and this can vary between providers.
  • Minimum typical advance £10,000.
  • Enduring power of attorney cases can be acceptable, full details required.

What types of schemes are available for my clients?

There are three main types of equity release schemes:

Lifetime mortgages — A loan secured against the property, which accrues interest until the loan plus interest is repaid when the property is sold. This is usually on entry into long-term care or when the last remaining owner passes away. Schemes are available to homeowners between 55 - 95, Clients can typically release 11-55% of the value of their home, depending on age, health and lifestyle.

Drawdown plans — A drawdown lifetime mortgage has the same advantages and disadvantages as a regular lifetime mortgage. The main difference with a drawdown plan is that the full sum of money available to the client is not released immediately. Instead, they can decide on a maximum amount of equity they want to release and ‘drawdown’ the remaining cash in stages, as and when they want to.

For your client releasing equity from their home is a lifetime commitment, with the loan only expected to be repaid when the home is sold, usually when they pass away or move into long term care. If they do decide to pay the loan back early, early repayment charges may apply with up to 25% of the loan being charged.

Home reversion plans — With a reversion part or all of the property is sold in exchange for a tax-free cash lump sum. Home reversion plans guarantee a lifetime lease with no monthly repayments to meet. When the house is sold due to death or entry into long-term care the reversion company receives its share of the sale price. The main drawback to home reversion plans is the client will not receive the full market value for the share they sell.

What safeguards are in place to protect my clients?

Our chosen Equity release partners will only recommend Equity Release Council approved plans, which subscribe to the following guarantees;

  • The right to remain in their home for as long as they choose
  • The freedom to move to another property without financial penalty (subject to lenders’ criteria)
  • No negative equity guarantee – so the amount owed never exceeds the value of their home.

What is the process for equity release?

Once referred, the client will receive a phone call for a free initial no obligation telephone consultation which provides the opportunity to gather detailed information about the client’s requirements, priorities and preferences. You will receive an update from Promise Solutions confirming the outcome of the initial customer telephone call.

The equity release advisor with liaise with the client through to completion and you will get updates at key stages. Of course you are free to liaise with your client but take care not to get drawn into giving advice unless you are qualified to advise on equity release products.

After the mortgage offer stage and prior to completion of the plan the client will liaise with an approved SHIP (Safe Home Income Plans) solicitor who will be required to sign a certificate once he or she is satisfied that their client fully understands the risks and benefits of the plan. The client’s adviser will be on hand during the whole process to answer any questions the client may have along the way.

If you have any initial queries call 01902 585052
Once the application has been referred we can arrange for you to have direct contact with the advisor.

This information is intended for intermediaries only and is not intended for customer use.