Releasing Equity for a better retirement
Lifetime mortgages and home reversion plans are popular ways of releasing equity from your home. More people in the UK are starting to use the value built up in their home as a way to help them enjoy a better retirement. As the UK market grows, releasing equity couldn’t be easier. Today’s equity release schemes are more flexible and the majority are backed by SHIP (Safe Home Income Plans) to ensure that you will never owe more to the product provider than the value of your home.
No monthly repayments
Releasing equity from your home means that you won’t have to worry about monthly repayments. Equity release plans differ from a standard mortgage or loan and you are effectively using your own capital so you don’t need to pay anything back until your house is sold when you die or move into residential care in later life.
You’ll never have to move home
Releasing equity from your home means you can stay in the home you love because you won’t have to downsize to get the cash you need. Before equity release grew popular, many people were forced to sell their homes for something smaller or somewhere cheaper in order to free up capital or consolidate their debts (by consolidating your existing unsecured debts, you may extend the term and overall costs of your debts). But with the falling housing market less people want to take up this option. By releasing equity from your home you can stay in your house for the rest of your life if you choose to do so.
Tax-free payments
Releasing equity from your home means the money you receive is tax-free. And depending on which type of equity release plan you opt for, you can have your money in one large lump sum or you may want the comfort and security of a regular income to supplement your pension.
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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