Releasing equity from your home

Many people who have built up equity in their homes at some stage consider the option of releasing this equity whilst still living in their home. Some of the reasons for this consideration are:

  • To pay off a mortgage
  • Help family and friends
  • For home improvements
  • Additional spending: Holiday of a lifetime, dream car

We can offer independent advice on lifetime mortgages. With a lifetime mortgage, you take out a loan secured on your home which does not need to be repaid until you die or go into long-term care. It could free up some of the wealth you have tied up in your home and you can still continue to live there.

Lifetime mortgages are available to homeowners aged 55 or over. You can take the money as a lump sum or as series of lump sums.

This is a complex area and choosing to release equity is a big decision. It is essential you take advice so that you can make the choice that’s right for you.

We make sure we keep the jargon to ourselves to ensure you understand everything, every step of the way.

We can also help you with the practicalities, working out what you need, considering alternatives, finding a solicitor, perhaps helping you explain things to your family. There are different products to choose from so it is important to get expert advice about the solution that best meets your needs.

Once things are decided, we can guide you through the process from start to finish.

A lifetime mortgage offer depends on your age and personal circumstances. All providers we work with offer plans covered by Equity Release Council (ERC) safeguards to protect your interests but there are important factors to consider before you take out a lifetime mortgage.

  • It will reduce the amount you leave as an inheritance.
  • With an interest roll-up mortgage the total amount you owe can grow quickly. We will make sure your mortgage includes a no-negative-equity guarantee.
  • A mortgage with variable interest rates might rise significantly. This is capped for mortgages meeting the Equity Release Council standards.
  • It might affect your tax position and entitlement to means-tested benefits.
  • Lenders will expect you to keep your home in good condition within the framework of reasonable maintenance. You might need to set aside some money to do this.

All initial consultations are without charge, so please give us a call to discuss today.

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