What is equity release?
Equity release allows you to unlock some of the value in your home as a tax-free lump sum (and in some cases, as smaller withdrawals over time). You don’t need to move out of the property and you’ll still own your home.
The most common type of equity release is a lifetime mortgage. With a lifetime mortgage, there are usually no mandatory monthly repayments, unless you choose to make them. Instead, the loan is typically repaid when the last borrower moves into long-term care or passes away, and the property is sold.
Lifetime mortgages are available to single or joint homeowners who are usually aged 55 or over, subject to eligibility and lender criteria.
Why choose equity release?
Some of the most popular reasons homeowners give for wanting to release equity include:
- Paying for new improvements to your home.
- Helping a family member purchase their first property.
- Consolidating other debts.
- Taking a large family holiday.
- Making a large purchase, such as a new car.
Taking out a lifetime mortgage can provide a way to access funds without downsizing, dipping into savings or pensions, or relying on other borrowing options. A good equity release adviser will help you weigh up the benefits and the long-term impact, so you feel confident in your decision.
