Is Equity Release Right For
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Equity release schemes are available to homeowners aged over 55.
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They allow you to get cash out of your home without having to leave your home
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Most schemes allow either a lump sum or an income to be taken, many will allow both.
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The money taken is tax free
Most people considering equity release will have looked at other ways of raising the money first, these include:
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Asking family of friends for a loan or gift
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Moving to a cheaper property.
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Taking out a personal loan, for many people this may work, but loans have to be paid back and one of the reasons people use equity release is to pay off debt, without reducing their income.
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A debt management plan: may work.
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Waiting for an inheritance, winning the lottery.
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A conventional interest only mortgage (sometimes called a RIO). These can be at lower interest rates but most are time limited and have to be repaid by the time you reach 85. You’ll need a very good pension to be able to afford one of these and if you have a partner, wife or husband, they will need to be able to make the repayments from their own means if you die.
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