Is an Equity Release Lifetime Mortgage for you?
An equity release lifetime mortgage is proving to be an ideal solution for many UK homeowners over 55 who feel that their pension funds or current savings aren’t stretching enough for them to lead the life they want. That’s because an equity release lifetime mortgage allows you to unlock the value tied up in your home and you can use the cash as you wish without having to make monthly repayments or move out of your home. As with all financial planning it needs to be considered carefully alongside other financial options, which is why it’s important to get the very best advice from a trusted equity release lifetime mortgage provider.
How an equity release lifetime mortgage works
The cash you borrow from your home will be paid back when the house is eventually sold. You may continue to own and live in the house for as long as you live. In most cases, you can move home during the loan period if you decide as long as the new property meets certain conditions, which your equity release lifetime mortgage provider will be able to advice you about at the time.
After your equity release lifetime mortgage loan is approved you will receive a tax-free lump sum and your heirs will pay less in heritance tax.
It’s always best to go to a trusted independent provider as there are many factors which need to be considered such as the impact the loan may have on your state benefits and the inheritance your family will receive.
So is it right for me?
Perhaps the most important point is that taking out an equity release lifetime mortgage is a lifelong commitment because it is designed to be repaid only when you die or if you eventually move into long-term care. Therefore, if you are searching for a more short-term deal then there may be better ways of raising money.
You should always think about any other options available to you before committing to an equity release lifetime mortgage. For example, downsizing your home or using any savings you have could work better for you. It is always best to go over every viable option, but having said that, there are clearly many great benefits to releasing equity from your home.
There are three main types of plans available including lifetime mortgage, drawdown mortgage and home reversion plan. So if you’re 55 or over, you’ll be aware how fast life passes you by - an equity release lifetime mortgage could be the answer you’ve been looking for.
For no-obligation advice on whether equity release could help you and information on the best plans please call our 24 hour helpline and speak to one of our advisors:
Or use the comments box below to ask a question.
Equity Release may involve a Lifetime Mortgage or Home Reversion Plan. To understand the features and risks ask for a personalised illustration.
Age Partnership provides initial advice at no cost and without obligation. Only if you choose to proceed and your equity release case completes would a typical fee of 1.5% of the amount released or £795 be payable.
Important things to consider about equity release:
- Equity release could affect your current or future entitlement to means-tested benefits
- Releasing equity to spend in your lifetime can reduce the amount that is left in your estate when you pass away
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