Home Income Plan Return to all services
The advantages and disadvantages of home income plans largely depend on whether the money is released through a lifetime mortgage or a reversion plan, however annuities have their own set of pros and cons:
- A lifetime annuity guarantees that the income will be paid for as long as you live.
- Income can usually be taken on a level or increasing amount each year.
- With a home income plan annuity, you can usually get a higher income than would be payable from a standalone annuity.
- You may be able to take some lump sum in addition to the annuity.
- The older you are the higher the income.
- As interest is repaid automatically, the reduction in the home's value is minimised.
- You are committed to an annuity as a means of extra income, leaving you no choice of alternatives.
- You can lose out by taking a lifetime income if you were to die soon after the plan is completed, unless the plan includes protection against this.
- You do not have the option of allowing the interest to build up, so the reduced annuity may not improve your financial circumstances greatly.
- Home income plans involve borrowing against your home and may work out more expensive in the long term than downsizing to a smaller property.
- Home income plans may affect your entitlement to state benefits and grants.
The initial advice it provided at our expense and without obligation to proceed. You will only incur a fee if you decide to go ahead and we do not ask for payment until the equity release completes. We can be paid by commission, a fee or a combination of both. Our typical fee is £995
LIFETIME MORTGAGE CAN QUICKLY ERODE THE REMAINING EQUITY AND AS A RESULT THERE MAY BE NO VALUE LEFT TO PASS ON.
EQUITY RELEASE MAY REQUIRE A LIFETIME MORTGAGE OR HOME REVERSION PLAN. TO UNDERSTAND THE FEATURES AND RISKS, ASK FOR A PERSONALISED ILLUSTRATION.
For customers who are moving house or re-mortgaging we typically charge a fee of £295 in addition to any commission we receive from the lender.
Our fees range between £0 and £995 depending on your individual circumstances. We will let you know our fee before you agree to use our service. Some examples of where our fees vary from the typical charge are detailed below. These are in addition to any commission received:
- If you are buying a New Build property other than a shared ownership property, or with equity release we will not charge a fee.
- For Shared Ownership New Build purchases we charge a fee of £99.
- For Equity Release we charge a fee of £995