Saga Equity Release And Lifetime Mortgage Reviews Update 2024

Are you looking for a way to unlock the wealth tied up in your home without having to sell it and move house? Saga Equity Release could be the perfect solution for you!

With a money-back guarantee, no early repayment charges and no fees, Saga’s equity release scheme is one of the most flexible products on the market. With Saga Equity Release, you can access tax-free cash from your home that can be used however you wish. It’s an ideal way to supplement your retirement income or fund a dream project.

But what’s the catch with equity release? Is it really as good as it sounds? The truth is that while equity release does provide you with a lump sum or regular income, this money will need to be repaid when you pass away or move into long-term care. However, if used responsibly, equity release can be a great way to make the most of your assets and enjoy life in retirement.

Low Rate Equity Release Plans For January 2024 – Free Valuation

  • Remove tax-free cash from your home with age flexibility
  • 4.91% APR for Saga equity release
  • No lender fees and hidden extras
  • Free property valuation
  • No product fees
  • Choice to secure a Saga mortgage to purchase another home
  • Make a monthly payment if you so choose to do so
  • 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:

Saga equity release awards

Are you over the age of 55 and looking for more financial stability? Equity release schemes could be the perfect fit for you.

Despite the economy struggling in the UK, hundreds of equity release plans are still available that offer competitive interest rates, high loan-to-value ratios and long-term protections tailored to your needs as you age.

Plus, with inheritance protection, you don’t have to worry about impacting your beneficiaries’ estate after you’re gone. You can preserve a portion of the future value of your property to ensure they will receive their inheritance even if the loan grows over time.

Get started with a no-obligation quote today by filling out our online form above – it only takes a minute and is secure and easy to use.

saga equity release

Do any of the following apply to you?

  • ​Do you have a mortgage you need to pay off?
  • Do you require money for repairs or home improvements? Like a new kitchen or bathroom.
  • ​Would you like to help ​a family member purchase their first home?
  • Would you like to pay off all your credit cards and loans and have zero monthly payments?
  • Would you like a better lifestyle, change your car or have a well-deserved holiday?
  • Release Equity From Your House As A Cash Sum Or Regular Payments

Saga Equity Release Reviews

All the Saga Money products are designed for the over 50 age group. Saga Equity Release became voluntary members of the Equity Release Council in 2014, expanding its product range for their over 55 customers, and giving them further options to release equity from their homes to fund their retirement years.

Saga has over two million customers and provides advice on a range of retirement planning and products tailored to different circumstances.

In 2021, responding to customer demand, Saga launched their Regular Drawdown Lifetime Mortgage, letting homeowners between the ages of 60 and 80 release equity from their homes as monthly payments instead of typical conventional lifetime mortgages, which enable homeowners to withdraw lump sums as and when they choose.

About the Saga Equity Release Advisory Scheme

The Saga Equity Release Advice Service is run in partnership with HUB Financial Solutions – part of the Just Retirement Group. As part of the partnership, customers are offered free, impartial advice suited to equity release products from the Just Retirement Group. The Service is essentially an introductory service to HUB Financial Solutions.

As they are part of Just Retirement, there are two products tailored to Saga customers, which have been created after feedback from their customers but are available to new and existing customers alike.

The Saga Equity Release scheme is an advisory service only and not regulated by the Financial Conduct Authority as regulatory requirements extend to advisors and lenders. They partner with HUB Financial Solutions, to provide the advisory service.

saga lifetime mortgage

1st UK is a wholly independent financial advisor, experienced in all aspects of equity release, with no ties or obligations to any equity release company. We offer free and impartial advice with no obligation to all homeowners over the age of 55 with no obligation to proceed.

Saga Equity Release Options Explained

The Saga Lifetime Mortgage

  • The Saga Lifetime Mortgage is open to homeowners aged 55 and over. For joint applications, the youngest applicant will need to be 55 years of age to be eligible to apply
  • The minimum home valuation required is £70,000
  • Properties must be in the UK and be used as your primary residence

The amount you’ll be eligible to borrow will be based on your age at the time of the application and the value of your property.

Home Reversion Plans

Home reversion plans are available to eligible homeowners through the Saga Equity Release Advice Service. The service is an introductory service to Just Retirement Home Reversion Plans.

To be eligible for a home reversion plan:

  • Your property must be worth at least £120,000
  • The minimum age (or youngest age on a joint application) is 65 years of age
  • The property must be in the UK and be used as your primary residence

With a home reversion plan to release equity, you’re essentially selling part of your home but retaining the right to live there rent-free. You won’t get 100% market value because when you sell the equity, you receive payment for a proportion of your home, but it isn’t a loan. It’s the sale of equity.

As you retain the right to live there for the rest of your days, the lender cannot force a sale. They only get the money returned when your home sells. That could be decades from now.

saga lifetime mortgage rates

You will retain full homeownership, but you won’t be able to sell it. As such, all maintenance and general upkeep of the property will be your responsibility.

As with all types of equity release, home reversion plans are not for everyone and can only be entered into following the advice of a financial advisor.

Saga Regular Drawdown Lifetime Mortgage

  • The Saga Regular Drawdown Lifetime Mortgage is open to homeowners aged between 60 and 80 years old. Your property will need to be worth at least £150,000 to be eligible.
  • Payments are split between an initial lump sum payment and then smaller monthly payments. The monthly payments released as part of this lifetime mortgage are tax-free; however, it can affect any means-tested benefits you receive or are likely to receive in the future.
  • The minimum term to receive monthly payments is five years. The maximum time you can release monthly payments is 18 years.
  • The total value of the loan you’ll be eligible for is based on your age (or the youngest applicant on a joint lifetime mortgage) and the home valuation

One of the examples given by Saga is an applicant aged 65 years at the time of application with a home valued at £300,000. The illustration shows that based on the maximum LTV, a lifetime mortgage could be used to raise £91,200, with an initial payment of £10,000 as one lump sum tax-free payment, then followed by monthly payments of £676 per month over the next ten years.

The interest applied is based on interest roll-up, so you don’t need to pay anything towards the cost of the loan. You have the no negative equity guarantee, the right to live in your property for the rest of your days and the only interest payable is based on the money released and not on future monthly payments.

  • There is a minimum of £200 for monthly payments
  • The minimum lump sum payment is £10,000
  • Each year the policy is reviewed giving you a chance to increase or decrease the amount of money you receive each month from the lifetime mortgage
  • The interest rate you’re offered applies to the first year’s funds released, including any monthly payments plus the initial lump sum payment. Policies are reviewed on an annual basis after that, so your interest rate could be higher, lower or stay the same from the second year of your lifetime mortgage. There’s no guarantee of the interest rate being fixed for the duration of the loan.
  • Saga is offering no set-up fees, advisory fees or valuation fees. Legal fees will apply.
do saga do equity release

This plan is suitable for those who want to top up their retirement income for any purpose. It’s designed to supplement your income; however, if you are in receipt or expect to receive any benefits such as Pension Credits during the loan term, the monthly payments and lump sum payments could affect any income you receive from the State.

With 1st UK, our advisors are experienced in financial planning for retirement. They can help you determine if any equity release schemes suit your situation and if so, the most affordable and sensible way to release cash from your property.

Saga Equity release interest rates

A Saga lifetime mortgage has a meagre rate of interest of 4.91% fixed for life, starting from January 2024.

What are the 2024 Saga equity release fees?

There are no fees on Saga lifetime mortgages starting January 2024.

How Saga Equity Release Funds Can Help Your Family In Retirement

While conducting our saga equity release reviews it was clear that depending on which plan you choose, you could release a tax-free lump sum for any purpose.

Most large sums released through lifetime mortgage products are used for home improvements; however, Gloria Barker, head of Saga Products explained to Your Money, a lot of their customers are seeing their homes as assets to fund later life, rather than as assets to be left as an inheritance.

However, many Saga customers are releasing large sums and increasingly gifting those to relatives. So, instead of leaving money behind from their estate, retirees choose to unlock some of the cash accumulated in cheap property wealth to enjoy with their families before they’re gone.

Lifetime mortgages are not without risks and do need professional financial advice before you can agree with any equity release company.

1st UK are experienced advisors and whole of market equity release and over 55 home reversion plan brokers able to provide a wealth of knowledge and help you plan for retirement or release funds in retirement.

Free, impartial advice you and your family can trust!

We hope that you found our Saga equity release reviews beneficial. Please note that the Saga logo is a trademark of Saga Personal Finance Limited, with which we have no direct affiliation. The equity release firms we work with provide quotes from many providers.