RBS Equity Release Options In 2024

RBS equity release is an increasingly popular option for those looking to unlock money tied up in their home. It allows homeowners to access the equity they have built up in their property without having to sell it. This can be a great way to supplement retirement income, pay off debts, or make home improvements.

The Royal Bank of Scotland (RBS) offers a range of equity release plans that are designed to meet the needs of different customers. RBS equity release plans offer fixed rates for the life of the loan and come with no early repayment charges. This means that borrowers can benefit from a low-cost loan that won’t increase over time.

In addition, RBS equity release plans come with a free valuation so that customers can get an accurate assessment of how much money they can access from their property. This helps ensure that customers are able to make informed decisions about their finances and take advantage of the most suitable plan for them.

Overall, RBS equity release plans provide a secure and cost-effective way for homeowners to access money tied up in their property without having to sell it. With competitive rates and no early repayment charges, these plans are becoming increasingly popular among those looking for financial security in retirement.

Low Rate Equity Release Plans For Febraury 2024 – Free Valuation

Remove tax-free cash from your home with age flexibility
4.25% APR for equity release with our selected provider
Zero lender fees and hidden extras
Free property valuation
No product fees with our equity release companies
Choice to get a mortgage to purchase another home
Make a monthly payment if you so choose
Help out a member of your family in buying their own home with a small mortgage
Retain 100% ownership of your home while continuing to live there

Please Enter Your Requirements Below:

Equity Release

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Property Value*The value of your home must exceed £70,000 to qualify
Please enter a number from 70000 to 25000000.
How much would you like to release?*Please enter a value between £10,000 and £25,000,000
Please enter a number from 10000 to 25000000.

Are you over the age of 55 and feeling concerned about the security of your finances and those of your loved ones?

If so, you may have stumbled upon an excellent opportunity.

Equity release schemes allow individuals to access the money that is locked away in their homes, helping them make the most of their hidden value. And despite disruption to the UK economy, there are still more than 300 different plans available – a huge selection offering competitive interest rates, higher loan-to-value ratios, and different long-term solutions to fit each individual’s needs.

Worried that equity release could impact your estate? Consider inheritance protection – overall, it allows you to set aside a portion of the property’s future value for your beneficiaries. Regardless of how much the loan increases over time, this protected part should stay within your estate untouched.

So what are you waiting for? Get a no-obligation quote today by filling in our easy online form above. It takes only one minute. Start securing your finances now and make sure those closest to you are taken care of later on.

What Is The Current Situation With RBS Equity Release Products?

Equity Release is a specialist type of mortgage, designed for the life of customers with two options of repayment. One of which is interest roll-up whereby no interest is paid by the borrower, but instead the interest accrues monthly and is repaid following the sale of the home, which will be when both homeowners die or move into a long-term care home.

To enter this type of mortgage, the mortgage must be submitted through a financial advisor as it is a highly regulated financial product, overseen by the Financial Conduct Authority.

1st UK is independent and can assist homeowners over the age of 55 with advice on how to release equity from their homes in the most affordable and accessible method of borrowing.

The RBS equity release scheme was initially rolled out in 2006. At the time when RBS launched their lifetime mortgage range, it was only available directly to their own customers and not available through intermediaries, nor did RBS have SHIP membership, which is now the Equity Release Council.

There are a number of equity release companies offering competitive terms, varying borrowing criteria with guarantees such as the No Negative Equity Guarantee and the Right of Tenure, both of which are advantageous, but nevertheless, the real value (or lack of) lies in the small print of the mortgage offer.

What’s Meant by a Lifetime Mortgage?

Equity Release Schemes designed for the over 55s (over 60 with some equity release companies) are a regulated financial product that lets older homeowners borrow against their home equity. Lenders use the term lifetime mortgage for this type of equity release scheme as it’s easier to understand that when you’re entering into this type of mortgage as it is for life.

For those nearing retirement who still have a mortgage in place, any funds released from a lifetime mortgage must be used to repay an existing mortgage, leaving you with 100% equity in the property. There will be a charge placed on the Title Deeds, but you remain the homeowner.

Click To Release Tax-Free Cash

The first charge is put there for the lender to be repaid the amount owed based on the initial mortgage plus interest.

The amount you can borrow will be based on your home’s value and age at the time of application. The older you are, the more you can borrow. Generally, most equity release companies will offer around 10% equity at the lowest entry age of 55 years old, with older borrowers, sometimes up to the age of 90 years old, able to borrow up to 50% of their home’s value.

One key difference with a lifetime mortgage is that no medicals are required; however, there are Enhanced Lifetime Mortgages, which can let you borrow more equity from your home at an earlier age if you have a medical condition that will shorten your life expectancy.

For an Enhanced Lifetime Mortgage, an assessment will help the lender decide on how much you can borrow and put a tailored policy together. Enhanced equity release schemes require specialist underwriting and not all equity release firms offer these.

For security, different lenders have minimal amounts they’ll accept for your home’s valuation. Most stipulate your property must be worth £100,000. At age 55 years old with full homeownership, as in, no mortgage in place, it would be possible to borrow from £10,000.

Unlike standard secured homeowner loans, there are no restrictions on what you can spend the funds on. The only requirement attached to equity release offers is that your home is kept in a good state of repair to preserve its value.

Lump Sum Payments or Income Draw Down

The majority of equity release firms will offer eligible homeowners two ways to release funds from their homes:

As a lump sum
Or with a drawdown, which just means multiple withdrawals

As you can use the money for anything, including investment purposes, home improvements or renovations, you may not need the total amount you’re offered. If that is the case, you’ll be able to take some of the cash you’re approved for as an initial payment, leaving the rest on reserve should you want or need to borrow in the future.

One thing to keep in mind if you do decide to use a Lifetime Mortgage product is that it will affect future borrowing. That’s one of the reasons you may want to consider drawdown as it would let you release a lump sum upfront while leaving approved finance available to withdraw at a later date.

Both options will be discussed with you by a financial advisor to ensure you know your options and have your questions answered before you sign any agreement.

1st UK will explain all your borrowing options, and possible implications, discuss financial planning and how equity release could affect any means-tested benefits.

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Can Anyone Apply for Equity Release?

Homeowners cannot apply directly for any lifetime mortgage as it must be arranged through a financial advisor. Currently, none of the main lenders such as RBS, Halifax or Barclays offers equity release schemes for over 55s. They will provide homeowner loans up to 90% LTV (sometimes higher) on a residential remortgage, but not a lifetime mortgage product.

The difference between a lifetime mortgage and a residential mortgage is that with a lifetime mortgage, interest roll-up is used and no monthly payments are made. The loan is repaid (capital plus interest) when both joint homeowners die, or both people move into a long-term care home. With a residential mortgage, repayments would need to be paid immediately.

About Guarantees with Equity Release Schemes

Reputable investment firms offering lifetime mortgage products are members of the Equity Release Council. Part of the membership requires consumers to have protection.

The main protection is the No Negative Equity Guarantee. As the name suggests, it means you can never owe more than your home is worth. In practice, it means your heirs to any inheritance cannot be left with debt. But it also means a significant portion of your property’s value will go towards repaying the loan plus compounded interest, which in the worst-case scenario, could leave your heirs with nothing.

It’s for that reason equity release must be done with careful consideration after an in-depth discussion with a qualified financial advisor. It’s best used as part of retirement planning and not as a method of borrowing for emergency funding.

You Can Also Benefit from the Right of Tenure Guarantee

In addition to the No Negative Equity Guarantee, which eliminates the risk of your family inheriting debt, there’s also a Right of Tenure guaranteed with the most reputable companies. With this guarantee, if one person from joint homeownership goes into a long-term care home, the remaining resident has the guarantee that they can continue living in the property, without a sale being forced.

Done right, with expert advice, equity release and a home reversion plan for over 55 can help homeowners release equity from their homes, pay off existing mortgages, perhaps interest-only and be left with cash to help provide a comfortable retirement.

Contact 1st UK to see how we can help you release equity tied up in your home in the most affordable way possible without any obligation!

Because of the cost of living crisis, there is new demand for a cheap property for sale in the North as spending money on servicing debt is not sustainable for some people.