For many people, their home is their most valuable asset. Unlocking this value through equity release is an option that an increasing number of over 55s are considering to help them plan financially for retirement.
Individuals aged 55 and up can use equity release to withdraw funds from their home without having to make monthly payments. Lifetime mortgages and home reversion schemes are the two types of equity release. A house owner can use an equity release product to take a lump amount or regular smaller sums from the value of their home while still living there.
There are increasing range of new and innovative of products to choose from in the modern equity release market. There is likely a plan available, whatever your equity release requirements are.
Your details will only be used to answer your query and they will not be stored for marketing purposes.
Equity release can be utilised for a variety of purposes, including:
A lifetime mortgage is the most common type of equity release. Customers who take up a lifetime mortgage keep full ownership of their house, and any interest on the loan can be paid as it accrues or rolled up and paid at the end.
When you die or move to permanent long-term care (or in the event of a couple, the last person residing in the home), your estate repays the loan and any outstanding interest.
The amount of money a customer can borrow is determined by factors such as their age, health, and the value of their home. Only persons over the age of 55 are often eligible for lifetime mortgages.
If you make the decision to take out either a lifetime mortgage or a home reversion, you must also take independent legal advice
A Lifetime Mortgage is not suitable for everyone and may affect your entitlement to means tested benefits, so it is important to seek financial advice before taking any action. If you are considering releasing equity from your home, you should consider all options available before equity release.
The interest that may be accrued over the long term with a Lifetime Mortgage, may mean it is not the cheapest solution. As interest is charged on both the original loan and the interest that has been added, the amount you owe will increase over time, reducing the equity left in your home and the value of any inheritance, potentially to nothing.
Although the final decision is yours, you are encouraged to discuss your plans with your family and beneficiaries, as a Lifetime Mortgage could have an impact on any potential inheritance. We would also encourage you to invite them to join any meetings with your Financial Adviser so they can ask questions and join in the decision, as we believe it is better to discuss your decision with them before you go ahead.
Helen has handpicked a dedicated expert to help even more clients. Our Equity Release specialist Michael can assist with all your enquiries in this area.
Address: FIRST FLOOR, 21 Great George Street, Wigan, WN3 4DL
Tel: 01942 311555
Email: info@hfassociates.uk
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
Some Buy to Let mortgages are not regulated by the Financial Conduct Authority.
The information on this website is for use of residents of the United Kingdom only. No representations are made as to whether the information is applicable in any other country that may have access to it.
Helen Ferneyhough Associates is a trading name of Just Mortgages Direct Limited which is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited, which is authorised and regulated by the Financial Conduct Authority. Just Mortgages Direct Limited Registered office: Colwyn House, Sheepen Place, Colchester, Essex, CO3 3LD. Registered in England No: 2412345.
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