If you own your own home and are aged 55 or older*, you could use Equity Release to free up equity from it to spend on things you need or want. ‘Equity’ is the difference between the value of your property and any outstanding loans (such as a mortgage) secured against it.
Why You Might Consider Equity Release
There are many reasons more people than ever are using Equity Release; be it less than expected pension provisions, increased costs of living and longer life expectancy. In addition, more plans from more providers offering greater flexibility makes Equity Release the solution for many individuals and their families. Ultimately people use it so they can improve their quality of life.
Common reasons for taking out an Equity Release plan include:
- Improvements to your home, such as kitchens and bathrooms, extensions and conservatories
- To clear secured loans, the mortgage or unsecured debts like credit or store cards
- Holidays, family gatherings, foreign travel, cruises or tours
- Purchases of significant items, for example motorhomes, cars or even holiday homes
- Helping children or other relatives with deposits to buy their own homes
- Improve day to day funding and/or enable early retirement • Reduction in inheritance tax liability
- Treating the family
Q1: What is Equity Release?
Q2: How much equity can I release?
Q3: What are the normal interest rates on a lifetime mortgage?
Good to know
If your property has a tenant living in it, or you share with a carer or younger relative, you may still qualify for equity release.
This is a Lifetime Mortgage which may reduce the value of your estate and may affect your entitlement to means tested benefits. To understand the features and risks ask for a personalised illustration.