Saga Equity Release: What to Know in 2024

Saga equity release, aimed at those over 55, partners with trusted providers to offer plans with competitive interest rates and a no-negative-equity guarantee. Their standout feature is personalized advice, ensuring customers find the right plan for their circumstances.
  • Last Updated: 17 May 2024
  • Fact Checked Fact Checked
  • Our team recently fact checked this article for accuracy. However, things do change, so please do your own research.

Contributors:

Francis Hui
What Is Saga Equity Release and How Does It Work? Find Out About Its Interest Rates and If It Is Safe and Reliable. Read On...
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Key Takeaways
  • With Saga, you’re protected—home equity without moving and get a guaranteed cash boost without having to owe more than your home’s worth.
  • Need cash later? Tap into a reserve at any time through Saga’s flexible cash reserve option.
  • Check in on your plan with regular reviews with Saga to keep it in line with your evolving financial landscape.
  • Costs to consider include fees for setup, home valuation, legal advice, and possibly early repayment-plus the interest that adds up.

You have probably landed on this post because you would like more information about Saga’s equity release options, and in 2024, Saga’s equity release is considered a good choice for its comprehensive plans and commitment to tailored advice.

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:

    Who Offers the Lowest Rates in 2024?

    Discover the Lowest Rates & Save

    Request a FREE call back & discover:

    • Who offers the LOWEST rates available on the market.
    • Who offers the HIGHEST release amount.
    • If you qualify for equity release.
    Saga Home Equity Release

    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.

    What Is Saga Equity Release & How Does It Work?

    Saga equity release allows homeowners to access their property’s equity through loans or sale agreements, providing financial flexibility with repayments deferred to a later date.

    What’s Saga & What Services Do They Offer?

    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.

    How Do Saga Lifetime Mortgages Work?

    The Saga Lifetime Mortgages are an exclusive product offered by Saga via HUB Financial Solutions Ltd., which allows homeowners to borrow against their home’s value, with the loan plus interest repaid when the home is sold or the owner passes away.

    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?

    Equity release schemes allow homeowners over 55 to access their property’s equity as cash, with various plans available, repaid upon the homeowner’s death or sale of the property.

    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’s Saga’s Equity Release Structured?

    Saga’s equity release is structured around offering homeowners cash from their property’s value, with flexible repayment options tailored to individual needs and circumstances.

    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.

    Having your house valued by an expert, you decide the amount to release, which can be up to 50% of your home’s value.

    What Features Define Saga’s Equity Release Schemes?

    Features defining Saga’s equity release schemes include competitive interest rates, flexible withdrawal options, and a no-negative-equity guarantee, tailored for homeowners’ financial security and peace of mind.

    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 the Costs and Interest Rates of Saga’s Equity Release?

    The costs and interest rates of Saga’s equity release vary by plan, including application fees and competitive rates, designed to suit different financial needs and preferences.

    What Interest Rates Does Saga Offer for Equity Release?

    Saga offers competitive interest rates for equity release, tailored to the homeowner’s specific financial situation and the chosen plan’s details.

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

    Equity release interest rates currently range from 5.25% 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 Fees Are Associated With Saga’s Equity Release?

    Fees associated with Saga’s equity release generally include application, valuation, and legal costs, structured to ensure clarity and fairness throughout the process.

    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.

    How Can You Use Saga’s Equity Release Calculator?

    You can use Saga’s equity release calculator to estimate how much equity you can release from your home, based on your age and property value.5

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

    What Are the Pros and Cons of Choosing Saga for Equity Release?

    Choosing Saga for equity release offers pros like trusted advice and competitive rates, but cons may include the impact on inheritance and long-term debt accumulation.

    More information:

    What Are the Benefits of Saga Equity Release?

    The benefits of Saga equity release include access to tax-free cash, a no-negative-equity guarantee, and the option to stay in your home, enhancing financial flexibility in retirement.

    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).

    What Limitations Come With Saga Equity Release?

    Limitations with Saga equity release include potential impacts on inheritance, eligibility for means-tested benefits, and the accrual of interest over the loan’s term.

    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.

    What Do Customers and Reviews Say About Saga Equity Release?

    Customers and reviews praise Saga for its reliable equity release advice and service, though experiences may vary.

    What Methodology Was Used in Reviewing Saga Equity Release?

    The methodology we used in reviewing Saga equity release involved collecting all the available data on Saga and compiling 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.

    What Do Customers Say About Saga Equity Release?

    Customers typically praise Saga equity release and the reviews and ratings are relatively positive, though experiences can vary based on individual circumstances.

    Its 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.

    How Does Saga Address Equity Release Complaints and Maintain Regulatory Compliance?

    Saga addresses equity release complaints with a focus on resolution and customer satisfaction, maintaining regulatory compliance through stringent adherence to Financial Conduct Authority guidelines.

    How Does Saga Handle Equity Release Complaints?

    Saga handles equity release complaints through a dedicated process, prioritising swift resolution and customer satisfaction.

    Complaints can be lodged on its 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

    What Are Saga’s Financial Conduct Authority (FCA) Credentials?

    Saga is authorised and regulated by the Financial Conduct Authority (FCA), ensuring their equity release products and services comply with strict regulatory standards set for financial institutions in the UK.

    The FCA’s oversight guarantees that Saga operates with integrity, transparency, and in the best interest of their customers, providing a layer of protection and confidence for individuals considering equity release.

    Saga’s specific FCA registration number and further details about their authorisation can typically be found on their website or directly through the FCA’s financial services register.

    Under What Trading Names Does Saga Operate?

    • 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

    What Services Is Saga Permitted to Provide by the FCA?

    • Insurance
    • Consumer credit
    • Investments

    Who Regulates Saga’s Financial Services?

    • Financial Conduct Authority
    • The Equity Release Council

    What Are Saga’s FCA Registration Numbers?

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

    How Can You Get In Touch With Saga for Equity Release Queries?

    You can get in touch with Saga for equity release inquiries via phone or their website.

    How to Contact Saga for Equity Release Inquiries

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

    Key Questions Answered About Saga Equity Release

    How Does Saga Equity Release 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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