Equity release is a special type of mortgage meant for people who are 55 or older and own a home. It lets you use some of the money (equity) that has built up in your home over the years. We have a simple calculator to give you an idea of how much you could borrow.
Pension Income
• You borrow against the value of your home while retaining ownership.
•The borrowed amount, plus interest, is typically repaid when you pass away or move into long-term care.
•The interest can either be paid regularly or added to the loan amount
Home Reversion Plans
• You borrow against the value of your home while retaining ownership.
•The borrowed amount, plus interest, is typically repaid when you pass away or move into long-term care.
•The interest can either be paid regularly or added to the loan amount
Equity release can provide a source of income in retirement, but it's a significant financial decision with potential long-term implications. It's important to seek professional advice before considering equity release to understand its impact on your financial situation, inheritance, and eligibility for means-tested benefit
Key Benefits of Equity Release
Cash Access: Unlock funds from your home for various needs.
Flexibility: Use the money as you wish, from home improvements to retirement income.
Tax-Free: Enjoy tax-free proceeds from equity release.
No Monthly Repayments: Relief from monthly payment obligations.
Property Ownership: Retain full ownership with a lifetime mortgage.
Customizable Plans: Tailor the plan with features like voluntary repayments.
No Negative Equity Guarantee: Loved ones won't repay shortfalls with reputable plans.
Freedom from Downsizing: Maintain your current lifestyle without moving.
Council Standards: Adherence to Equity Release Council standards ensures quality advice.
Family Involvement: Encouraged to involve family for support and understanding.
Awareness Matters
Accruing Interest: Compound interest may accumulate without regular repayments.
Reduced Inheritance: Equity release could impact the inheritance for your loved ones.
Early Repayment Charges: Though more flexible, charges may apply if repaid before the fixed term ends.
Benefits Impact: Eligibility for means-tested benefits may be affected.
Long-Term Commitment: Equity release plans are designed for the long term, with potential charges for early repayment.
Family Involvement: While beneficial, involving family may introduce complexities.
Consider Alternatives: Explore alternative financial options before committing to equity release.
