If you’re 55 or over and a homeowner, you may be considering equity release to access some of the money tied up in your home. Put simply, the equity in your home is the difference between the market value of your property, and your outstanding mortgage or debts on it.
Many people find that when they reach retirement age, they have a lower income than they would like. Equity release allows you to access this money in one lump sum or several small payments, so whether you want to make home improvements, provide financial support to your family, or just need to supplement your retirement income, you can do so while continuing to live in your home.
A lifetime mortgage is the most popular type of equity release scheme, where money secured against your home is borrowed at a fixed or capped interest rate. Instead of making monthly repayments, the loan is paid back with interest when the property is sold. The sum of money that you can borrow is typically dependent on your age and the value of your home.
Although equity release can be beneficial to many people, it’s essential that you are fully informed about the impact that it will have on you and your loved ones. Our advisers are fully qualified and experienced when it comes to advising on equity release, and as a member of the Equity Release Council, we’re committed to a Statement of Principles, which ensures that our customers are offered the best protection.