Saga Equity Release enables homeowners aged 55 and over to access the value of their property without selling it.

This product allows for tax-free cash withdrawals, which can be used for various purposes such as home improvements, debt repayment, or enhancing your retirement.

This review explores the details of Saga’s equity release offering, shedding light on the benefits it provides to eligible borrowers.

COMMENT: TimeBank.org.uk is an independent third-party data provider, and the information shared here reflects their views alone, not necessarily those of Saga. This article is for informational purposes only and should not be considered financial advice or a recommendation to engage with any products offered by Saga.

Saga’s Equity Release Product

Saga’s equity release product is known as the Saga Lifetime Mortgage.

This lifetime mortgage is designed to help homeowners aged 55 and over unlock the value of their property without having to sell it.

The type of equity release offered by Saga is a lifetime mortgage, which allows homeowners to borrow against the value of their home while still retaining ownership.

Lifetime mortgages are designed not to require repayments, though optional repayments are allowed.

The loan, along with any accrued interest, is typically repaid from the sale of the property when the homeowner passes away or moves into long-term care.

Key Features of the Saga Lifetime Mortgage

The Saga Lifetime Mortgage is provided by Just, and key features include a money-back guarantee, service promise, and flexible payment options.

Some more detail:

• Money Back Guarantee: Saga’s lifetime mortgage includes a six-month money-back guarantee, allowing you to repay the initial advance without interest or charges if your circumstances change, such as receiving an inheritance or changing your plans. This guarantee applies to initial advances up to £150,000, with additional eligibility terms detailed in the product’s terms and conditions.
• Saga Service Promise: Saga aims to release funds to your solicitor within 40 working days of application acceptance. If this target isn’t met and all eligibility criteria are satisfied (excluding property purchases), Saga will pay you £100 as compensation. Terms and conditions apply.
• Flexible Payment Options: Saga’s lifetime mortgage offers flexibility with the option to pay some or all of the monthly interest, reducing the loan’s total cost. Additionally, borrowers can take payment holidays of up to three consecutive months within any 12-month period if needed.

Role of Financial Advice in Saga’s Offering

Financial advice is crucial to ensure that clients make informed decisions.

Saga provides access to HUB Financial Solutions, qualified financial advisers who assess individual circumstances and recommend suitable equity release options.

An advice fee of £799 will be payable if you decide to proceed with a Saga Lifetime Mortgage, and Saga will receive an introductory fee from HUB.

Eligibility Criteria

The eligibility criteria for Saga’s Lifetime Mortgage require that applicants be at least 55 years old and own a UK property worth at least £70,000.

The property must be the primary residence and meet certain standards regarding construction and condition.

Joint applications are allowed, but the youngest homeowner must meet the age requirement

Financial Implications

The financial implications of Saga’s lifetime mortgage include the accrual of interest on the loan, which can significantly reduce the value of the homeowner’s estate.

While the cash released is untaxed, it may affect entitlement to means-tested benefits.

Homeowners should consider the long-term impact on their financial situation and discuss potential consequences with a financial adviser

Application Process

The application process for Saga’s lifetime mortgage involves several steps.

These include:

1. An initial consultation with a financial adviser.
2. This is followed by the submission of a formal application.
3. Then, a property valuation will be conducted.
4. Next, you will receive an offer and consult your solicitor before signing the agreement.
5. Once approved, the funds are typically released within a few weeks.

The entire process should take about eight weeks.¹

The application process is designed to be straightforward and transparent, ensuring that customers are kept informed at each stage.

Benefits of Saga’s Lifetime Mortgage

Benefits of Saga’s lifetime mortgage include flexible access to funds.

Other benefits include:

• access to tax-free cash for various uses
• the opportunity to stay in your home without mandatory repayments during your lifetime
• the flexibility to repay some or all of the interest, and the ability to take payment holidays*
• a No Negative Equity guarantee, safeguarding customers from owing more than the value of their home
• Saga’s money-back guarantee, which allows you to repay the loan penalty-free if your circumstances change within the first six months*
• Saga’s Service Promise, which entitles you to a £100 payment if your funds are not released to your solicitor within 40 days*
• tailored advice.

*Please take a look at Saga’s terms and conditions for full details.²

Drawbacks to Saga’s Lifetime Mortgage

Drawbacks to Saga’s lifetime mortgage include the accrual of interest, which can significantly reduce the remaining equity in the home over time.

Other drawbacks may include:

• a reduction in the inheritance value left to your beneficiaries
• an impact on your eligibility for certain state benefits
• the cost, which may include associated fees, such as legal and valuation costs
• the limiting of future borrowing options
• potentially substantial Early Repayment Charges if you decide to repay your loan
• the complex and long-term nature of this kind of product (which necessitates receiving mandatory advice before applying)
• having to pay for council-funded home care you may have received for free.

Speak to your equity release advisor to make sure you are aware of all the potential benefits and drawbacks.

Customer Support & Resources

Saga provides comprehensive customer support and resources for its equity release customers.

This includes access to a team of qualified advisers from HUB, detailed guides, and an online equity release calculator to help customers understand their options.

Saga’s Equity Release Calculator

Saga’s equity release calculator can help borrowers figure out more or less how much they may be able to release from their home.³

An equity release calculator allows individuals to input specific details about their property and financial situation to receive an estimate of the equity they could release.

By using this tool, homeowners can explore different scenarios and understand how much equity they may be able to access based on various parameters.

Contact Saga Equity Release

You can contact Saga Equity Release telephonically or via email.

• Phone: 0800 096 7120
• Email: personal.finance@saga.co.uk

Client Reviews

While Saga Equity Release does not have a separate rating on Trustpilot, Saga plc. does, as do HUB Financial Services and Just, which provide Saga’s lifetime mortgage.

Ratings:

• Saga plc has a Trustpilot rating of 3,8 out of 5 (from nearly 40,000 reviews).⁴
• HUB Financial Solutions has a Trustpilot rating of 4,6 out of 5 (from about 550 reviews).⁵
• Just has a Trustpilot rating of 4,6 out of 5 (from about 450 reviews).⁶

Common Questions

Conclusion

Saga’s equity release plan offers a flexible option for homeowners aged 55 and over looking to access funds tied up in their property.

With features like a money-back guarantee, the option to pay interest, and the promise of fast fund release, the Saga Lifetime Mortgage aims to provide valuable financial flexibility.

However, it’s essential to consider the long-term implications, including potential impacts on inheritance and benefits eligibility.

For those seeking a trusted provider, Saga equity release, provided by Just, could be a worthwhile solution, but thorough research and professional advice are recommended before making a decision.