FAQs
What is an Equity Release Mortgage?
Equity Release is a popular way of releasing some of the value of your home without the need to move.
Whether you require a little extra cash to supplement your pension income, make home improvements, take dream holidays, or gift money to children, Equity Release lets you convert some of the value of your home into cash.
Top of the pageWhy Saffron?
Saffron Building Society has been trading for more than 160 years and has assets in excess of £800 million. As a mutual, we exist for the benefit of our members putting surplus funds back into the Society through better mortgages and savings products and to provide services such as Independent Financial Advice and insurance broking.
Saffron Building Society is regulated by the FSA (Financial Services Authority) we're also members of SHIP (Safe Home Income Plans) and adhere to their code of practice.
We recognise that this is a long term commitment from you and as such we've brought all of our experience in providing clear and fair mortgage products to our Lifetime Mortgage range. We believe we've delivered a range of products that are both suitable and flexible enough for the future. The information provided here and along with our product guides aim to demonstrate our commitment to you.
Top of the pageHow do I take out a Lifetime Mortgage?
A Lifetime Mortgage is a long-term commitment. As any large financial decision impacts those around you it's important to discuss your options with your family, an independent expert and your own legal adviser. This is why Saffron Equity Release is only available through Independent Financial Advisers. For more information on how to apply for a Lifetime Mortgage please visit www.saffronifa.co.uk.
If, after discussing with an IFA you still feel that this is the right decision for you, then we're confident our range of products will meet your needs.
Top of the pageWhat is the SHIP Code?
The Equity Release industry has created an independent organisation known as SHIP (Safe Home Income Plans) dedicated to protecting equity release customers. The formation of SHIP has helped develop a new generation of products that are much simpler to understand and offer more protection. The SHIP code of conduct is as follows:
The members of SHIP agree to provide fair, simple and complete presentation of their plans. The benefits, obligations, variables and limitations must be set out clearly in their literature, including all costs which the applicant has to pay in setting up the scheme, the position on moving, the tax situation and the effect of changes in house values.
The client's legal work will always be performed by the solicitor of his or her choice. In all cases, prior to the completion of the plan the solicitor will be provided with full details of the benefits the client will receive. The solicitor will be required to sign a certificate to the effect that the scheme has been explained to the client.
In addition, all SHIP plans carry a No Negative Equity Guarantee i.e. you'll never owe more than the value of your home.
Top of the pageHow is my Lifetime Mortgage paid off?
The loan will be repaid when your home is sold, usually following your death or your move into long-term care (or in the case of joint borrowers, when the surviving partner dies or moves into long-term care). When repayment is due, the full amount must be repaid and this will be made up of the original loan amount plus the accrued interest and charges that have been added. Any remaining equity in your home, after the loan has been repaid, will belong to you or your estate.
Top of the pageWhat happens to my home when I die or move into long-term care?
When you die (or in the case of joint borrowers, on the death of the survivor), your personal representatives must get in touch with us. They'll be responsible for selling your property and have 12 months to repay the loan. If you (or the surviving borrower in the case of a joint loan) move into long-term care you also have 12 months to repay the loan. We'll continue to charge interest until the loan is repaid.
Top of the pageWhat happens if my circumstances change?
You must advise us as this may affect the contract you have with us and may mean that you have to sell your property within six months to repay the loan e.g. if you move in with a relative.
Top of the pageWhat happens if I move home?
You can transfer your mortgage under the same Terms and Conditions as long as your circumstances and your new property meet our requirements and lending criteria at the time.
Top of the page
- Fixed Rate Mortgages
- Discount Mortgages
- Tracker Mortgages
- Buy-to-Let Mortgages
- Standard Variable Rate Mortgage
- Lifetime Mortgages
- Existing Customers
Protect your mortgage
from £1.82 per month
Getting a quote is quick and easy
Useful information
