Our approach to retirement has changed; we're enjoying longer life expectancies and our expectations of this time has shifted considerably. It’s no wonder more people are considering property wealth as a tool to fund their retirement. After all, there could be more equity in their homes than cash in their pension pots. 

While your clients may find the thought of releasing money from a home they’ve worked hard to own daunting, it doesn’t have to be. A lifetime mortgage is a form of equity release that gives your clients the flexibility and choice to access cash in later life. Nevertheless, a lifetime mortgage is a big financial decision and myths still exist about how they work. 

To understand the hesitations people may have, we asked a number of 55 to 75 year olds about some common misconceptions.

 

Myth

"I won’t own my own home anymore.”

Fact: Having a lifetime mortgage doesn't mean your client is selling their home to the lender. It’s a loan secured against their home that will be repaid when the last remaining borrower dies or moves out of the home and into long term care.

Myth

“I’ll end up paying more than the value of my own home – my children will inherit my debt.”

Fact: Lifetime mortgages are protected by the Equity Release Council’s ‘no negative equity’ guarantee; your client, or their estate, will never owe more than the value of their own home. This means they'll never have to pay back more than the amount their property is sold for. Subject to terms and conditions.

Myth

“Equity release is just a last resort for people desperate for money.”

Fact: Clients choose to take out a lifetime mortgage for many reasons. More than a third use the money to refurbish and renovate their home. 17% use the money for a dream holiday and 13% use the money to help buy a new vehicle.

Factsheet

Our useful factsheet debunks some of the most common misunderstandings in equity release.

Download it so you can stay informed and help your clients make sound financial decisions.

White label leaflet

Give your own clients the confidence in a lifetime mortgage by customising this myth busting leaflet with your own details.

The leaflet should be printed along the short edge. This can be changed in ‘properties’ after selecting ‘print’.

Speak to our team

Still a little confused about some of the myths around lifetime mortgages? We can help demystify some of the misconceptions around the market.

Leave a message and we can arrange a convenient time to talk.

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