The following information is for use by Intermediaries only. 

The equity release market is growing rapidly. Black Book Finance are pleased to now bring you access to this niche sector serving the ‘over 55s’ mortgage market.

This whole of market equity release partnership has been developed to look after the needs of our introducers who would like to offer their clients access to equity release, but do not hold the relevant FCA Permissions and Professional Indemnity (PI).

Our service allows you to generate new business by simply referring clients. In return, your clients will receive a professional equity release service, plus you will receive an additional income stream, with no risk of cross-selling.

Plans recommended to clients can range from releasing equity from the client’s main residence, second properties, holiday homes and now also Buy-to-Let equity release products.

Benefits to you:

• No need to hold Equity Release permissions, or to increase your PI cover
• Simply refer your clients and let our partner do all the work on your behalf, from the initial client engagement through to completion & release of funds

Benefits to your clients:

• Access to Equity Release schemes from the whole of market
• Access to exclusive products, including free valuations, cash-backs & reduced interest rates
• Our partner will gather your clients’ information, establish their preferences, priorities and financial objectives before making a recommendation.

What is Equity Release?

Equity Release Schemes allow homeowners (aged 55+) to access the equity built up in their home. The release can be made as a lump sum, or in several smaller amounts, or as a combination of both.

There are two main types of equity release schemes:

Lifetime Mortgage: Available from age 55+, and is a loan secured against the value of the property. In most cases these loans do not require any form of repayments until death or long-term care, when the home is eventually sold. Interest is normally rolled-up and added to the loan. The borrowers will retain 100% ownership of their property. The amount of equity that can be released is subject to age and the property value. The older the clients, the greater lump sum they can release.

Home Reversion: Available from age 65+, and is where the client sells all, or part of their property, in exchange for a cash lump sum, an additional income for life, or both. The extra guarantee for homeowners under a Home Reversion plan is they have the right to remain in their property until death, or until moving into long-term care, as the reversion company offers a ‘lifetime lease’.

In recent times Lifetime Mortgages have become the most popular choice, and account for over 99% of all new equity release loans.

How Does Equity Release Work?

• Available to homeowners aged 55 or over who are in, or approaching, retirement
• Lifetime mortgages available as a lump sum or initial drawdown with agreed cash-reserve facility
• Lenders will accept most purposes for use of the tax-free cash sum
• Interest is typically rolled up and added to the loan
• Interest-Only and Voluntary Payment Plans will allow repayments if required, with NO income verification
• Lending is based on the property value and age of the youngest borrower
• LTVs range between 21% to over 55%, dependent on age
• Many providers offer Lifetime Mortgages with the choice making voluntary interest repayments payments of 10% per year of the amount borrowed without penalty

Popular uses for Equity Release include

• Increase income in retirement and improved standard of living
• Home Improvements
• Repayment of Interest-Only mortgages at retirement, where repayment vehicles are absent
• Clearing unsecured debts, such as credit cards, personal loans etc
• Paying for help around the home, including domiciliary care
• Bank of Mum & Dad – Gifting and providing financial assistance to their children and grandchildren
• Can be used for House Purchase for a main residence, or for a second home or BTL

Find details here to see the ‘LTV Table’ – showing an indication of the maximum loan available on a main residence, based on the age of the youngest borrower.

To refer a client please complete our online enquiry