Benefits of an equity release plan
Most plans now feature much more flexibility than in the past.
- ✔ Lump sum of tax-free money.
- ✔ Continue to live in your own home.
- ✔ Choose to protect an inheritance.
- ✔ No monthly repayment option.
- ✔ Make repayments if you want to.
- ✔ Add a cash reserve facility.
- ✔ Maintain 100% home ownership.¹
- ✔ Spend the cash as you wish.
- ✔ Ability to move home in the future.
- ✔ No-negative-equity guarantee.
- ✔ Low rates available to fix for life.
- ✔ High cash release available.
- ¹You only continue to own your own home with a lifetime mortgage, secured against your property.
You could continue to own your home so you will benefit fully from any future increase in its value. There are also guarantees with some plans to make sure you can never pass on debt, or 'negative equity', in your estate and you can choose a plan that has an option to be ‘portable'. This means you could move home in the future.
Some even allow you to take control of how much money you owe by letting you make monthly or partial repayments if you wish - thereby reducing the amount of interest you pay and limiting the impact on the size of your estate. A change like this could save you thousands of pounds in interest over the course of the plan.
In short, equity-release plans are now more flexible and more affordable than ever before.
To find out more about the different plan types available to you and what other things need to be considered, please follow this link »
Who could release equity?
In general you may be eligible to release funds from the value of your property if:
It is also a condition that you use some of the money you receive to pay off any mortgage you may have against the property. Of course, this can be of great benefit as that monthly mortgage repayment - for many people their most significant regular outgoing - becomes a thing of the past.
However, equity release is not suitable for everybody which is why it is so important to speak to an independent specialist before you make a decision.
Our phone lines are open 24 hours a day, 7 days a week, and there are no automated systems, please call us on Freephone 08080 555 222 to get all your questions answered.
Why has it become so popular?
There has been significant growth in the equity release market. This may in part be due to over-55's requiring additional income coupled with new innovative and flexible products. Lenders have also continued to keep interest rates low and are still contributing to plan set-up costs.
Equity release may involve a lifetime mortgage or home reversion plan. To understand the features and risks, ask for a personalised illustration.
Popular Next Steps
We compare the whole of the equity release market