FREQUENTLY ASKED QUESTIONS

Through our considerable experience in the Equity Release market, we have compiled a series of frequently asked questions to give you further information.  If your question isn't answered, please do not hesitate to contact us, so that we can see how we ca help you.

Is Equity Release right for me?

Before considering an equity release plan you should ask yourself the following questions:Firstly, 'Are you prepared to use the value locked up in your home?'If the answer is yes, you should also ask yourself, 'Have you considered the alternatives to equity release?'There are some alternatives to an Equity Release Plan such as... Move to a less expensive property and use the surplus funds to meet your income or capital needs Use any existing resources, such as savings and investments or other assets Use assistance from family, grants or unclaimed State Benefits. Do nothing and pass on the whole value of your home when you die.



Will I lose my home?

If you are taking out any kind of Lifetime Mortgage with Viva Retirement Solutions then you will always own your property.



Could I leave a debt behind to my family?

​No! At the very worst there will be nothing left in terms of property value, but even if there is a debt, this will be wiped off completely by the lender. You can also select a guaranteed percentage of your home is left behind



Will there be anything left?

This will depend on the amount you borrow, when you borrow it and how long you live for. It is also dependent on your property value as any increase in value over the years will reduce at least part of the interest accrued.



Can I repay at any time?

Yes, although this is deemed as a lifetime commitment. If you come into some money there will be a facility to repay all of the amount owed early, but there may be early repayment charges involved.



Why is the interest rate higher than the short term interest rates?

​As suggested by the title a lifetime mortgage is deemed a commitment for life and so each lender has to look at the long term interest rates and come up with a rate that will reflect the coming years. This is because the interest rate is fixed for life from when you take your money – so that you know what would be owed in the future at any given point. Short term interest rates are currently very low, but it was not too long ago that they were also very high and this prospect needs to be accounted for in the interest rate you are given.



Is Equity Release Safe?

The equity release market of today is safer than it has ever been and is now regulated by the industry watchdog, the Financial Conduct Authority (FCA). Advisers who practice advising on Equity Release must now also have specific qualifications in this specialist field. The market is also protected by an industry body known as The Equity Release Council who took over from SHIP (Safe Home Income Plans) in May 2012. The Equity Release Council is dedicated entirely to the protection of plan holders and promoting only safe equity release plans. Their Code of Practice has been welcomed across the industry.Some of these guarantees that are typical in Equity Release Plans:

  • The right to remain in your home for as long as you choose.
  • The freedom to move to another property without financial penalty (subject to lenders' criteria).
  • That you will never fall into negative equity no matter what happens to house prices in the future.
Independent Legal Advice from a solicitor of your choice. On top of this, the integrity and experience of the advisers at Viva Retirement Solutions means that you and your family can rest easy in the knowledge that you will be treated in a way that is relevant to your knowledge of Equity Release and that you are made aware of all of the pro’s and con’s in your specific situation before a recommendation is made – this may be to proceed with Equity Release or that it is not right for you.