Saga Equity Release And Lifetime Mortgage Review in 2024

Are You Considering Saga’s Equity Release Lifetime Mortgage to Unlock Capital? Find Out About Its Interest Rates and If It Is Safe and Reliable. Read On…
  • Last Updated: 01 Feb 2024
  • Fact Checked
  • Our team recently fact checked this article for accuracy. However, things do change, so please do your own research.

Contributors:

Francis Hui

Key Takeaways

  • Saga equity release is a means for homeowners aged 55 and over in the UK to unlock the value tied up in their property without having to move, by receiving a tax-free lump sum or regular payments.
  • As a member of the equity release Council, they adhere to strict standards designed to protect consumers, making it generally considered a safe option.
  • The amount of money you can release depends on various factors such as your age, the value of your property, and the specific plan you choose.
  • The pros include tax-free cash and the ability to stay in your home; the cons include potential impact on inheritance, increased debt over time due to interest, and possible effects on your entitlement to means-tested benefits.
  • Costs involved include an arrangement fee, valuation fee, solicitor's fees, and potentially early repayment charges, along with the accumulated interest over the loan term.

You have probably landed on this post, because you would like more information about Saga's equity release options.

More and more homeowners have started to make the most of their previously inaccessible property wealth with equity release products.

While it is great to be able to offer an equity release comparison, the fact that there are many options can make the whole process daunting.

The good news is that it does not have to be.

In This Article, You Will Discover:

    At Every Investor, our research team has spent countless hours reviewing equity release information and putting it together in an easy-to-use format.

    Saga’s equity release option is a market leader, and we will help you discover more about it.

    Therefore:

    NOTEEvery Investor is an impartial and unconnected third-party information provider via this website, and the details replicated in this commentary represent the opinions of Every Investor only and may not reflect the views or opinions of Saga. This article must not be interpreted as advice, nor is it a solicitation to conduct transactions in any financial product provided by Saga.

    Who Is Saga?

    Saga is a British company that offers personal finance products and services to the over-50s.

    The company is based in the UK, with just over 2.7mln customers, and is an associate member of the Equity Release Council. 1

    Saga's lifetime mortgage plan is provided by HUB Financial Solutions Ltd, which is part of Just Group Plc.

    Saga will be paid an introductory fee by HUB, if you opt for an equity release product.

    Lifetime Mortgage

    The Saga lifetime mortgage is an exclusive product offered by Saga via HUB Financial Solutions Ltd.

    This plan offers various flexible benefits, including the ability to repay monthly interest in part or in full.  

    A lifetime mortgage allows you to retain 100% ownership of your property.

    What Are Equity Release Schemes?

    For over 55s, equity release unlocks the value in their home without the need to downsize.

    It's a financial route to access cash tied up in your property.

    The distinctive feature of equity release is its repayment terms; the loan and interest are repaid from the home's sale, typically after the homeowner's passing or move to care facilities, providing a no-monthly-payment solution.

    Read More: Equity Release Schemes Explained

    How Does Saga's Equity Release Work?

    This reputable product offers a tax-free lump sum or smaller amounts over time, without the necessity to move. It is regulated by the Financial Conduct Authority, meaning it adheres to strict standards of conduct to ensure customers are treated fairly.
    The essence of Saga Equity Release's working mechanism is simple yet effective. Having your house valued by an expert, you decide the amount to release, which can be up to 50% of your home's value. The money can be spent as you wish, while you continue to own and reside in your property. Interest is added to the loan, but payments are not necessary until the home is sold, either when you pass away or move to long-term care, ensuring peace of mind.

    Saga’s Equity Release Scheme Features

    Saga’s equity release scheme is a specialised lifetime mortgage product only offered by Saga.

    Interestingly:

    This lifetime mortgage includes a money-back guarantee, which means you can back out of the deal if you change your mind during the first six months.2

    Saga also offers a £100 cashback if your equity release funds are not paid to your solicitor within forty working days.3

    What Are Saga’s Equity Release or Lifetime Mortgage Interest Rates?

    Your equity release interest rate will be determined based on how much equity you release.

    Equity release interest rates currently range from 5.20% to 6.30%* (AER) and may have increased following borrowing levels rising after the mini-budget last year.4

    *While we regularly review our rates, these may have changed since our last update.

    What Are Saga’s Fees?

    There are no fees for receiving advice from Saga and you will not pay if you decide not to proceed.

    However:

    If you opt for equity release, you will need to pay your provider, who will pay Saga a referral fee.

    On average, equity release fees range from £1,500 to £3,000*.

    *While we regularly review our fees information, this may have changed since our last update.

    Does Saga Have an Equity Release Calculator?

    Yes, Saga has an equity release calculator.5

    Saga’s equity release calculator is a guide and gives you an estimate of how much you could unlock with equity release.

    You could also try our equity release calculator below for an approximation.

    What Are The Advantages and Disadvantages of Using Saga?

    The advantages of using Saga include the fact that it is a member of the Equity Release Council, while the disadvantages include that it only offers one lifetime mortgage product.

    More information:

    Saga Pros

    A full list of pros:

    • The Equity Release Council6 supervises Saga.
    • You have the option to pay back the loan without incurring any penalties within the first six months.
    • If you need to take an interest payment break, you can take a payment holiday of three consecutive months in a twelve-month period.
    • It is authorised and regulated in the UK by the Financial Conduct Authority (FCA).

    Saga Cons

    A full list of cons:

    • Opting for equity release will reduce the value of your beneficiary's inheritance.
    • Cumulative compound interest on the loan can be costly.
    • With any equity release product, your eligibility for benefits could be impacted.

    How Did We Review the Information on Saga?

    We collected all the available data on Saga and compiled a summary of what it offers.

    NOTE: This article is an unaffiliated, independent, third-party, review of Saga.

    Saga is a member of the Equity Release Council, which means that it is safe, and adheres to guidelines that are in place to protect customers.

    Saga Customer Reviews 

    Saga’s reviews and ratings are relatively positive. 

    It's Trustpilot rating from approximately 37,000+ reviews equates to 4.4 out of 5. 

    Have a look:

    Note that reviews are related to a variety of Saga products.

    Saga Customer Complaints

    Saga complaints can be lodged on it's website or by telephone.

    More information:

    • By telephone - 0800 096 7120
    • In writing - Customer Relations Department, The Saga Building, Middelburg Square, Folkestone, Kent, CT20 1AZ.

    Saga is committed to resolving any concerns and complaints you may have and will acknowledge your complaint within five working days.7

    Saga's FCA Details 

    Trading Names

    • Saga Personal Finance is registered as Saga Personal Finance Limited
    • Direct Choice
    • Saga Select
    • Saga
    • Saga Group
    • Saga Insurance
    • Saga Insurance Services
    • Saga Services
    • Saga Services Limited

    FCA Permitted Services

    • Insurance
    • Consumer credit
    • Investments

    Regulators

    • Financial Conduct Authority
    • The Equity Release Council

    Registration Numbers

    • FCA Ref Number: 178922
    • Companies House Number: 03023493

    Saga Contact Number and Address

    • +44 800 096 7120
    • Enbrook Park, Sandgate, Folkestone, Kent, CT20 3SE.

    Common Questions

    What Is Saga Equity Release and How Does It Work?

    Is Saga Equity Release a Safe Option?

    How Much Money Can I Get with Saga Equity Release?

    What are the Pros and Cons of Saga Equity Release?

    What are the Costs Involved in Saga Equity Release?

    Is Saga's Equity Release Safe?

    Is Saga a Member of the Equity Release Council?

    Who Owns Saga?

    Are You Looking for a Job at Saga?

    Does Saga Offer Equity Release?

    What is The Loan to Value of Saga's Equity Release?

    In Conclusion

    It is evident that Saga is a reputable and safe equity release provider.

    The company offers various personal finance services and products and has a well-established later-life lending product range.

    If you are considering your options and want to learn more about the Saga equity release offering, contact your financial adviser for assistance.

    The features mentioned and the amounts raised, are subject to the lender’s criteria, terms and conditions. These may take into account the age, health and lifestyle factors in order to provide an enhanced amount. To understand the features and risks, ask for a personalised illustration.

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