For many of us the biggest asset we have is our home. In retirement, people are relying on pension savings or the state pension, but there are times when those provisions may be insufficient, or we may face an unexpected need to access a large lump sum of money.
Why you might consider Equity Release
You are a homeowner aged over 55 and you are looking to release capital from your home to fund any of the following:
- Retirement, such as topping up your income, paying for a holiday or a new car
- Paying off your existing mortgage debt.
- Helping your children get onto the property ladder.
- Home or garden improvements.
- Help to buy another property
- Longterm care planning
Equity release could help improve your retirement, but there may be alternative products that may be more appropriate to your situation. You should consider other savings and investments before taking equity release and look into other options to borrow money that may be more cost effective.
Our specialist adviser can explain the features and risks in detail and help you make an informed decision.
The two main types of Equity release
A lifetime mortgage involves taking out a loan secured against your home. The loan and the accumulated interest is usually repaid from the sale of your house, either upon your death, or when you move permanently into long term care. The loan allows you to release either a lump sum or smaller lump sums from the equity in your home to take as and when you need it.
Interest on a lifetime mortgage will be charged on the total loan amount plus any interest already charged. That means the amount you owe can grow quickly and reduce the equity that’s left in the property. The amount you owe could exceed the value of the property. If you decide to repay a lifetime mortgage early, you could incur early repayment charges. A lifetime mortgage may affect your entitlement to state benefits.
Home Reversion Plan
With a home reversion plan, you sell your home, or a percentage of it, to a reversion company for less than the market value. You retain the right to live in it rent-free for the rest of your life. The money received can either be paid as a cash lump sum, a monthly income, or a combination of the two.
The reversion company is unable to sell the property until you die, or you decide to move into long- term care. When the property is sold, the company will receive the same percentage of the selling price as a repayment. For example, if you sold 60% of your home to a reversion company, they would receive 60% of its sale price.
Why Choose Us
- We can help you decide whether equity release is suitable for you
- We will search many equity release providers to find the most suitable arrangement for you and your personal circumstances.
- We can arrange an appointment at our local office in Cardiff or in the comfort of your own home*.
- Your first appointment is free of charge with no obligation to proceed with the advice
- Our Equity Release Adviser is fully qualified and approved by the Financial Conduct Authority (FCA)
Equity Release products are now fully regulated by the FCA. They can offer different options to suit your circumstances. Most products include a no-negative equity guarantee.
*subject to location
Important: YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED ON IT.