responsible.org.uk The Equity Release Specialist

responsible.org.uk What is equity? ‘Equity Release is a product designed for asset-rich home owners who do not want to move house but could use some extra money.’ ‘Equity in your home is the difference between the home’s fair market value and the outstanding balances of all mortgages, secured loans and charges on the property.’

responsible.org.uk What is equity release? You buy a house for £200,000. You personally pay £100,000 and borrow £100,000 in the form of a mortgage. The value of the home has increased to £300,000 over the years and you have paid off all but £20,000. You have £280,000 equity. You can access a portion of this through equity release.

responsible.org.uk What is equity release used for? ‘It’s nice to see their inheritance in action. Because of equity release, my granddaughters don’t want for anything when it comes to education’ ‐ Make home improvements. ‐ Clear your existing mortgage. ‐ Enhance your lifestyle. ‐ Gift your family & loved ones an early inheritance. ‐ Mitigate inheritance tax. ‐ Realise your ambitious travel plans. ‐ Help family plan for a wedding or a new family member. ‐ Improve the value of your home. ‐ Help loved ones onto the property ladder. ‐ Boost your business with some capital.

responsible.org.uk All of our plans come with a 100% ownership guarantee & you will never owe more than the value of your home. Roll-up Lifetime Mortgage Tax free, cash lump sum. No monthly repayments. Interest and loan paid from your estate when you pass away. Draw-down Lifetime Mortgage Tax free cash to draw when needed No monthly repayments. No Interest on amount held in the reserve account. Interest-Only Lifetime Mortgage Tax free, cash lump sum. Can make monthly interest payments. Can change to a roll-up plan. Types of Plans:

responsible.org.uk Example: Roll-up Lifetime Mortgage: Sally was 55, her husband John was 62 and their house was worth £200,000. They borrowed £25,000 to buy a car. The interest rate was fixed for life and the interest added to the loan each year. Sally outlived her husband but passed away 20 years after taking out the equity release plan. Their house increased in value at a yearly rate of 2.85%* and is now worth £350,846. They made no monthly repayments during the life of the plan and so the interest rolled up. Their estate sold the property and repaid the equity release provider £25,000 plus interest and the rest of the money went to their family as per the demands of the will.

responsible.org.uk Example: Draw-down Lifetime Mortgage Michael was 71, his wife Mary was 69 and their house was worth £400,000. They released £40,000 in a lump sum to gift to family for an early inheritance and to take a holiday. They were also able to reserve £20,000 in a drawdown facility to call upon in the future if needed. They received an interest rate that was fixed for life. After 5 years, they drew £5,000 from their drawdown reserve and a few years later drew the other £15,000 to take the whole family on holiday. Their house increased in value at a yearly rate of 2.85%* and after 15 years was worth £609,711 when both Mary and Michael passed away. Continued...

responsible.org.uk Draw-down Lifetime Mortgage (Continued) They made no monthly repayments during their lifetime and the interest was only ever charged on the money after it was actually drawn. Their estate sold the property and repaid the equity release provider the money borrowed plus interest. The money remaining went to the estate as per the demands of Mary and Michael’s will.

responsible.org.uk Example: Interest-Only Lifetime Mortgage: James is a 62 year old widower whose house was worth £300,000. James released £30,000 from his property and chose the Interest-Only Lifetime Mortgage where he was able to repay The interest each month. After 5 years James started working part time and was able to stop making monthly payments and convert his plan to a Roll-up Lifetime Mortgage. As James gave up work and his children moved further away, he decided to move to a smaller property and was able to move the plan on to his new property..

responsible.org.uk Pros and Cons of equity release Pros: It is tax free. It is yours to spend as you like. No monthly repayments. Inheritance tax benefits. Highly regulated. Stay in your home and retain ownership. Cons: It can affect your state benefits & tax position. As it involves taking money from your property all equity release plans will reduce the value of your estate later......but we will advise you on this.

responsible.org.uk Common Questions: What about my children’s inheritance? Can I stay in my home? What if I want to move? Can I end up owing more than the value of my home? Can I repay the plan early? Can I have a mortgage and equity release at the same time?

responsible.org.uk Customer care and satisfaction are our top priority. Honesty and transparency, we will tell you if it is not right for you. Clear, tailored advice. Equity Release Council Members. One of the largest equity release specialists in the UK. Why Responsible?

responsible.org.uk The Next Steps: If you wish to proceed further we can expertly take you through each step Talk to our UK based call centre. We’ll make you an appointment with one of our financial advisers. Face to face meeting with your financial adviser.

responsible.org.uk Thank you, I would now like to answer your questions. A Lifetime Mortgage may reduce the value of your estate and may affect your entitlement to state benefits. To understand the features and risks ask for a personalised illustration. Unless you decide to go ahead, our service is completely free of charge, as our typical advice fee of 1.6% of the amount released would only be payable on completion of a plan..