Call Our Equity Release Specialist On 01702 861970

Entitlement to Benefits & Changes To Assessed Income Periods After 5th April 2016

Benefit changes can have an impact on your financial position if you take out an Equity Release scheme. If you proceed we will provide you with a benefits entitlement report as part of the Suitability Report to establish any effect releasing the money will have on your entitlement to Pensions Credit, Council Tax Benefit and Working Age Benefit.

If you already have an AIP that is due to end between 6 April 2016 and 31 March 2019, it will end – either on the original date on your Pension Credit Award letter, or earlier if your household circumstances change. If you already have an AIP that is due to end on or after 1 April 2019, it will end early and will not be renewed. If you currently receive Pension Credit, the DWP will write to you telling you the new end date 6 months in advance. You can also find the new end date on the DWP website.

The Equity Release Council is keen to ensure you know what impact on any Pension Credit any Equity Release plan you enter into will have to avoid you taking decisions which may mean you losing out financially.


Inheritance Tax

The use of an Equity Release Scheme will reduce the values of your estate however this may help reduce any Inheritance Tax. Currently the standard Inheritance Tax rate is 40%. It’s only charged on the part of your estate that’s above the threshold. For example if your estate is worth £500,000 and your tax-free threshold is £325,000. The Inheritance Tax charged will be 40% of £175,000 (£500,000 minus £325,000). Since April 2017 you have been able claim an extra £100,000 – rising to £175,000 by 2020 – against the value of your home if you are passing it on to a direct descendant. This will eventually allow a couple to pass on a £1m home tax free. Equity release could be used to reduce the taxable value of an estate. When the person with the equity release plan dies, the mortgage is paid off from the value of the estate, with IHT then due on the remainder of the value. If, after the loan is paid off, the property is below the taxable value, no IHT would be due. Ultimately, you need to weigh up all of the alternatives and with our help decide if this is for you. Whether these alternatives meet your requirements

Wills & Estate Planning

The Financial Conduct Authority do not regulate on estate planning and will writing. If you do not leave clear instructions on how you wish to distribute your estate when you die, there is no guarantee that your assets will go to the rightful beneficiaries. This could mean that your spouse, partner, or even your children, lose some, or all, of their inheritance!

Without professional will writing, there could be further complications including:

  • Children or Vulnerable Adults being taken into care while guardians are appointed
  • Lengthy delays and disputes for your beneficiaries
  • ‘Common Law’ partners not receiving anything

Will writers can draw up your Will and can call on specialist Will writers, if your Will is complex. While Will writing is not regulated by the Financial Conduct Authority not all Will writers are specialists in their field. It is recommended working with companies whose Will writers are members of S.T.E.P (The Society of Trust and Estate Practitioners). Frost Financial Services accepts no responsibility for the service provided by external Will writers.

Why Frost Financial For A Equity Release Mortgage

We save you the hassle

Our highly trained and multi qualified Equity Release professional advisers work with you every step of the way to make the lifetime mortgage process simple, understandable and in line with your expectations. With enhanced borrowing available for ill-health and an option to downsize property (subject to Lender Underwriting Criteria) and take the Lifetime mortgage with you without Early Repayment Charges applied.

We’re impartial

All appointments with you are face to face and in our office or the comfort of your own home. We strongly encourage you to discuss your plans and have a family member, friend or a solicitor present in any discussions and decision making. We provide an advice and recommendation level of service with access to the whole equity release lifetime mortgage market and can find you the ideal product for your needs. We further adhere to the membership of the Equity Release Council promise to follow its stringent Statement of Principles for your added peace of mind.

We can improve your lifestyle

Think about what you could use the extra money for; to supplement your income, help your family, adapt your home, travel or buy that something special. You can achieve this whilst retaining 100% ownership of your home and, if required, maintain a Guaranteed Inheritance for your family. You can choose to make repayments, make no payments and roll up the interest to be repayable when the property is sold or add a Drawdown facility with staged payments which only attract interest once you take the money.

Contact our experts without delay

Our experts are on hand to help you! Enquire today by calling us on 01702 554028 or using our contact page.

    Mortgage advisers based in Hadleigh, Essex. We provide a large panel of lenders as well as loans, insurance and equity release.

    Frost Financial Services is authorised and regulated by the Financial Conduct Authority. Registration number: 300133.

    For residential mortgages, your home may be repossessed if you do not keep up repayments on your mortgage.

    With lifetime mortgages you retain 100% ownership. To understand the features and risks, ask for a personalised illustration.


    Frost Financial Services
    Endway House
    The Endway
    SS7 2AN


    Frost Financial Services
    01702 554028


    Equity Release
    01702 861970