How does the equity release application process work?

If you are a homeowner wishing to release some of the cash tied up in your property, you’ve come to the right place. At John Whyte Equity Release, we can help you choose an equity release plan that’s right for you. With interest rates currently being fixed at very low rates for life, now may be an excellent time to apply.

As an independent equity release broker with a wealth of specialist expertise and many years’ experience, you couldn’t be in better hands. We will take you through the entire process from start to finish, making the experience as straightforward and easy to understand as possible. There’ll be no confusing jargon or pushy sales tactics – as a dedicated professional and long-standing member of the Equity Release Council, my aim is to give you the best impartial advice and help you achieve the best possible solution for your personal circumstances.

Here is how the application process works:

  1. Advice

From the moment you contact us by phone or email, you have our full attention. No sales teams, call centres or automated messages, you will be speaking directly to John Whyte, a highly experienced equity release specialist and independent mortgage broker. He will listen carefully to the goals you wish to achieve and ask some pertinent questions about your age, health and lifestyle as well as your property, income and any loans or schemes you may already have in place.

Based on this information, we will give you some suggestions for suitable lifetime mortgage plans along with an estimate of the amount you may be able to release. You can also use our handy calculator here. You will have the opportunity to ask any questions you may have and take time to discuss your plans with your partner or family. Any initial discussions or meetings are completely free of charge and without obligation of any kind.

  1. Search

Once you have decided to go ahead with equity release, we can proceed to the next stage where we go over all the details and find a product that suits your needs. This is where we really need to get to know you inside out. We will discuss the state of your health and any past or existing medical conditions. We’ll go over your financial situation including your current income and investments, any debts and outstanding mortgage payments.

We will look at your immediate needs as well as your future plans, with a clear idea of budget so you don’t apply for a loan based on guesswork. We will also discuss whether a lump sum or drawdown equity release plan is the best option for you. With so many equity release products on the market, we need to make sure that we choose the one that’s perfect for you, and that has the right interest rates and fees so you don’t pay more than you need to.

When we have all the relevant information, we can do our research and come up with firm recommendations for equity release products that might be suitable.

  1. Recommendation & Application

We will provide you with a full personalised illustration of our advised plan that explains all the benefits and risks including every possible detail of the costs, schedules, and terms and conditions. If you are happy to proceed, we will complete the equity release application together and facilitate the formal application with the relevant lender.

Once your application has been submitted, the lender will carry out their own assessment checks and take credit references. They will also arrange for your home to be valued – this could either be a quick inspection or a full property valuation carried out by an approved surveyor.

  1. Legal

Assuming the equity release provider is satisfied with your application and the property valuation, they will confirm they offer by sending out a Loan Offer yourself, your solicitor and your financial adviser.

It is important that you receive independent legal advice before accepting the equity release offer. In fact, it is one of the key principles of the Equity Release Council that all ERC compliant loans must be approved by an independent solicitor. If everything is fine, your solicitor will finalise the legal documents to complete the equity release process, so that the money can be released.

  1. Complete

When the legal applications process is complete, the lender will then finalise their instructions to release the tax-free funds via your solicitor. At this stage, all agreed legal and professional fees will be deducted and the net loan transferred to your account for you to use as you wish.

The whole process – from applying for the loan to the money arriving in your account – usually takes around 6 – 8 weeks, although this may vary if there are delays in applications processing by the lender or your legal representatives. In any event, we will keep a close eye on the process on your behalf striving to keep any delays to a minimum.

If you would like to find out more about equity release, please don’t hesitate to get in touch with John Whyte Equity Release, so we can answer any questions you may have in person. You can also visit our FAQ page for more information.

 

Talk to us today about equity release by calling 01903 890660 or by the form below.

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Equity Release Sussex is a trading style of TRM Financial Ltd (FCA Ref 725622), an Appointed Representative of The Right Mortgage Ltd, which is authorised and regulated by the Financial Conduct Authority (649443). Registered in England and Wales no. 09832887. Registered Address: 70 St. Johns Close, Knowle, Solihull,
England, B93 0NH

For Independent Equity Release advice we do not charge any upfront fees however,
a fee of up to 1% of the total cash facility arranged is payable (subject to a typical minimum charge of £1,295) on completion for our service in relation to lifetime mortgage contracts plus commission from the lender.

The exact amount will depend on the complexity and work involved in your case and will be confirmed by way of a formal fee agreement.

For Independent Mortgage Advice we charge a fee of up to 1% of your mortgage amount payable (subject to a typical minimum charge of £295 payable on application & £300 on completion (£595 in total) plus commission from lender. The exact amount will depend on the complexity and work involved on your case and will be confirmed by way of a formal fee agreement.
To understand the features and risks, ask for a personalised illustration. Think carefully before securing other debts against your home.