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5 Point Financial Planning
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Equity Release

A Lifetime Mortgage can quickly erode the remaining equity and as a result there may be no value left to pass on.

Equity Release is a lifetime mortgage or home reversion scheme. To understand the features and risks, ask for a personalised illustration.

Introduction to Equity Release

If you're typically over the age of 55, equity release offers you a way to use the value of your home to raise money.

It is advised that you seek Independent Legal advice before entering into a legally binding equity release contract.

Why do people consider Equity Release?

  1. To provide an additional income
  2. To provide lifetime gifts to relatives
  3. For home improvements
  4. For holiday home purchase
  5. To fund long term care

You probably have other ideas - there is no restriction on how you use the funds.

However, since equity release can be an expensive way to raise money when taking into consideration payment of arrangement fees or interest, you should also consider the following:

  • Your savings & investments
    If you have savings or investments you may wish to consider this alternative.
  • Benefits entitlement
    These could include disability living allowance, council tax assistance, or pensions or savings credit. Equity release could prevent you from receiving such benefits so it's worth speaking to your local authorities to consider these areas first. They may be able to offer you grants or assistance with essential home improvements and alterations that you would otherwise pay for yourself.
  • A smaller home
    If your family have grown up and they are off on their own financial journey now, your current home may be too big for your needs and you could consider something smaller and more economical to run. In this case, you could consider purchasing a smaller property, leaving you with a lump sum on completion.
  • Rent out a room
    If your house is sufficiently large you might consider renting out a room to bring in regular extra income.
  • Sell your home and live in rented accommodation
    This option involves selling your house and investing the proceeds in income producing investments. The income from these investments is then used to rent a property and for your living expenses. You would only really be able to generate sufficient income to live on if your property was sold for a large sum of money so this option should only really be considered if your house is worth in excess of £400,000.

Equity release has to fit with your needs, circumstances and preferences, where the benefits need to outweigh the drawbacks and be more suitable than alternative methods of raising funds.


Mortgage/Equity Release Enquiry
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Company address:
5 Point Financial Planning Ltd, Suite S4, Moulton Park Business Centre, Redhouse Road, Moulton Park, Northamptonshire, NN3 6AQ
T: 01604 497566
F: 01604 497567

Email: contact@5pointdirect.co.uk

Registration address as company address
Registration number: 4962087
Registered in: England

5 Point Financial Planning Ltd is an appointed representative of Intrinsic Mortgage Planning Limited which is authorised and regulated by the Financial Conduct Authority. Intrinsic Mortgage Planning Limited is entered on the FCA register (http://www.FCA.gov.uk/register/) under reference 440718.

The information and content within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK.

Telephone: 01604 497566 | contact@5pointdirect.co.uk

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