Equity release has been growing in popularity across the UK as more and more homeowners over the age of 55 look to release some of the wealth tied up in their property.
As house prices have increased over the years, so has the amount of equity tied up in your home. Everyone’s situation is different but now could be the perfect time to see how much cash you could release from your home.
So why should I consider releasing equity from my home?
1. If you take out a Lifetime Mortgage, you could release as little as £10,000 tax-free in the first instance, and leave funds in reserve for later drawings. What’s more, you retain full ownership of your home, you’ve simply borrowed against it.
2. You could become free from making mortgage repayments. Reduce your monthly outgoings by clearing any remaining mortgage balance. Without the drain on monthly mortgage payments, you are free to use your funds as you wish.
3. You could use it to help your loved ones. Releasing some of the equity from your home could allow you to gift an early inheritance to your heirs. See your inheritance in action and help your family financially when they need it. Equity Release can also be used as part of a comprehensive inheritance tax strategy, reducing the inheritance tax paid on your estate. The Financial Conduct Authority does not regulate Inheritance Tax planning.
4. You could be more financially secure. Releasing some of the equity from your home could make a big difference to your day to day life, by helping with travel, food, bills and other living expenses that are increasing.
5. You could pay for your dream retirement. Why not use some of the money you release to have the holiday of your dreams? Or to afford those luxury purchases such as a new car?
6. You could fund your home improvements. With the funds released from your property, you could finally be able to make those home improvements, such as putting in a conservatory, installing a more modern kitchen, landscaping the garden or extending the home to accommodate friends and family.
7. You know what you are being charged. With an interest rate that is fixed for life, you know exactly what the costs are.
8. Your home remains your own – for as long as you like. With a Lifetime Mortgage, you retain full ownership of your home and the mortgage, along with any accrued interest. It is only repaid when the property is no longer your primary residence.
9. You will never owe more than the value of your property – regardless of what happens in the future. You can never owe more than the value of your property, and no debt will ever be passed down to your heirs.