Equity Release
Introduction to Equity Release
If you're over the age of 55, equity release offers you a way to use the value of your home to raise money.
Why do people consider Equity Release?
- To provide an additional income
- To provide lifetime gifts to relatives
- For home improvements
- For holiday home purchase
- To fund long term care
You probably have other ideas - there is no restriction on how you use the funds.
However, you should also consider the following, as equity release can be an expensive way to raise money when taking into consideration payment of arrangement fees or interest.
Your Savings & Investments
If you have savings or investments you may wish to consider this alternative.
Benefits entitlement
These could include disability living allowance, council tax assistance, or pensions or savings credit. Equity release could prevent you from receiving such benefits so it's worth speaking to your local authorities to consider these areas first. They may be able to offer you grants or assistance with essential home improvements and alterations that you would otherwise pay for yourself.
A smaller home
If your family have grown up and they are off on their own financial journey now, your current home may be too big for your needs and you could consider something smaller and more economical to run. In this case, you could consider purchasing a smaller property, leaving you with a lump sum on completion.
Lifetime Mortgage can quickly erode the remaining equity and as a result there may be no value left to pass on.
'Equity Release' includes Home Reversion Plans and Lifetime Mortgages. To understand the features and risks please ask for a personalised illustration.
