What is Equity Release?
Equity Release is a method of releasing some of the money tied up in your home, without the need to move.
You can release some of the equity in your home to provide a tax-free cash lump sum, a regular income or a flexible borrowing reserve. How much you can release varies between lenders but usually depends on how old you are, how much your home is worth and how much you choose to borrow.
There are three types of equity release plans to choose from, Interest Only Mortgages, Lifetime Mortgages and Home Reversion Plans.
Important factors to consider:
- Releasing equity from your home will reduce the value of your estate, affecting the amount of inheritance you will be able to leave
- Releasing equity may affect your tax position and entitlement to any means tested state benefits
- Assess the alternatives to releasing equity from your property - e.g. downsizing
- Future property prices may be higher or lower than they are today
- Obtain a second opinion, discuss your plans with family or a trusted friend
This arrangement may involve either a lifetime mortgage or home reversion plan. To understand the features and risks ask for a personalised illustration.