This article is going to give you the answer to the most commonly asked question “how can I release more tax free cash from my home?’
An increasingly popular way to release equity from your home and boost your income is to use a lifetime mortgage.
You could be eligible to release equity from your home using a lifetime mortgage if you own a property worth at least ₤ 70,000 and you are aged 55 and over. This type of equity release plan enables you to take advantage of some of the money locked in your home and use the money to boost your disposable retirement income or spend as you want.
There are typically no monthly payments to make as the full amount owed is designed to be paid back from the sale of your home upon your passing away or when you move into long-term care.
Equity release has escalated in popularity over the years, with billions being released by over-55 homeowners each year. It has evolved and changed substantially over the last few years, with new providers entering the market contributing to an increase in the amount of products available.
What amount of cash can I release from my home?
The amount of equity that you can release from your home is mostly dependent on your property’s value and your age, but can also be influenced by your health. Using our equity release calculator, you can see an estimation of the amount of money that you could release.
What happens if I have an outstanding mortgage?
Provided that you use the released funds to pay off your existing mortgage, you can still qualify for a lifetime mortgage. Releasing equity is increasingly being seen as something of a lifeline for those struggling to pay off their interest-only mortgage as well.
Is equity release safe?
The Financial Conduct Authority regulates equity release When looking for an equity release product you need also to ensure that the providers are members of the Equity Release Council, which will provide you with extra safeguards such as a no-negative-equity guarantee.
This ensures that irrespective of what happens to house prices, whenever your equity release mortgage comes to an end, you will certainly never owe more than the value of your home.
Equity Release Guru is a trading style of Responsible Equity Release, an award-winning equity release specialist, which advises on plans from lenders approved by the Equity Release Council. All equity release sales must be accompanied by impartial professional legal advice.
It is essential to obtain equity release advice from a specialist, who will make sure you are made fully knowledgeable about the fees involved, and what taking out a type of mortgage for the over 60s means for you and your family. They will also explain how equity release may reduce the value of your estate and may affect your entitlement to means-tested benefits.
Will I still own my home with equity release?
With a lifetime mortgage, the most popular type of equity release, your property continues to be your own; you have the right to continue staying there for as long as you choose, or until you go into long-term care. In the same way, you are free to sell your home and relocate at any point in the foreseeable future and take the mortgage with you (subject to lender’s criteria). Exactly like a traditional mortgage, a lifetime mortgage is a loan secured against your home.
May I involve my family?
Definitely, a lifetime mortgage will impact the inheritance you leave, so your entire family needs to understand how equity release works and be involved in the decision-making process. Your Responsible Equity Release adviser will actively recommend you to involve your family in the whole process, including making them welcome to attend your appointments with your adviser if you wish.
Just how much does equity release cost?
Average equity release interest rates are at record lows and can be fixed for the lifetime of the mortgage, so you know what it will cost. Getting advice from an independent specialist like the Equity Release Guru- Craig Oliver means you will have full access to the best equity release deals across the whole of the market.
Your adviser will explain any other costs that may be involved, for example, solicitor fees, valuation fees and adviser fees. You will be provided with an illustration detailing all of the charges involved, ensuring you are fully aware of what releasing equity will cost you before you commit to going ahead.
How do I discover more about equity release?
You can read our free equity release guide co-produced by Equity Release Guru. The guide is the ideal first step towards discovering whether equity release could be the right financial move for you.
Except if you decide to go ahead, Responsible Life’s service is entirely free of charge as the typical advice fee of ₤ 1,490 will only be charged if your case completes.
This is a Lifetime Mortgage which may impact the value of your estate and could affect your entitlement to means-tested benefits. To understand the risks and features, ask for a personalised illustration.
This article is written by the Equity Release Guru, which is a trading style of Responsible Life Limited. Responsible Life Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register (https://register.fca.org.uk/) under reference 610205. Only if you choose to proceed and your case completes will Responsible Life Limited charge an advice fee, currently not exceeding ₤ 1,490.
By consolidating your debts into a mortgage, you may be required to pay more over the entire term than you would with your existing debt. Think carefully before securing other debts against your home.
With a lifetime mortgage, the most popular type of equity release, your home remains your own; you have the right to continue living there for as long as you choose, or until you enter long-term care.
A lifetime mortgage will affect the inheritance you leave, so your whole family needs to understand how equity release works and be involved in the decision-making process.
Your Equity Release adviser will actively encourage you to involve your family in the entire process, including making them welcome to attend your appointments with your adviser if you wish.
our adviser will explain any other costs that may be involved, for example, solicitor fees, valuation fees and adviser fees. You will be provided with an illustration detailing all of the charges involved, ensuring you are fully aware of what releasing equity will cost you before you commit to going ahead.