Homeowners reaching retirement age often find they have a great deal of equity tied up in their home. Many of them want to spend their retirement doing the things they’ve dreamed about, such as travelling or renovating their homes or helping a younger relative get on the property ladder, so need to get access to this money. Because long term care costs can also be an issue, releasing equity in your property can be useful to access funds to pay for this as well. Factors such as your age, the type of property you have, your income, your investments and your outgoings can all affect the options you have to release this equity so we can take all of this into consideration, as well as your aspirations, to advise you on the best route to go down.
A common choice for equity release is a lifetime mortgage on your property and many of these have the option for you to not have to make any repayments while you are alive or before you move permanently into a care home. As the debt on these can accumulate quite quickly, some offer the chance to pay off some or all of the interest or borrowed sum. Like all mortgages, there are lots of different options with these mortgages along with many different rates and costs. Similarly, they will not suit everyone so we always take all your circumstances into consideration before recommending them and talk you through the options to allow you to make an informed decision.
Other options to release equity exist such as home reversion (where you can access between 20% and 60% of your home’s market value either as a lump sum or regular payments) and they all have advantages and disadvantages depending on your situation and what you would like achieve with it. Whatever option we would recommend, we base our advice on a thorough assessment of your needs and ensure you understand the implications of what we recommend and why we have recommended it.
Risk Warning: This is a lifetime mortgage to understand the features and risks, ask for a personalised illustration