28th March 2020
Equity release is a way of unlocking a cash lump sum that’s tied up in your home – usually up to 60% of the value of your property – and without having to move. You will normally need to be over the age of 55 to be eligible and you can release the funds as a lump sum or in stage payments or both.
There are two equity release options that should suit most circumstances:
The most common option, a lifetime mortgage is secured on your home so you can continue to own it and you choose whether to make repayments or allow interest to accrue, which will mean the debt can rise quickly. Depending on your lifetime mortgage product, you may be able to make interest payments. When you die or move into care in the years ahead, the loan and outstanding interest will be repaid.
A home reversion product will entail selling part of all of your home to a provider. You’ll be able to stay in your home until you die and you’ll need to make regular or lump sum payments to the provider as well as maintaining and insuring the property. When you die or move into permanent residential care, your property will be sold although your estate will still retain the proportion of the property you held back at the start.
Equity release can be a complex concept and you’ll need to be sure that you’re getting the very best equity release advice. Talk to our team of expert mortgage advisers about your options and we’ll guide you through the process. Call us on 08454 500200 or click here to make an enquiry.
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