What is the potential of Equity Release?
- Receive a lump sum of tax-free money
The money you take, or “release” is your own money that just happens to be tied up in your home. It is not subject to income or other taxes when you take it. - Preserve a portion of your property value for your loved ones
Most providers and plans include the option of ringfencing part of the value of your property and ensuring your beneficiaries get what you want them to get.
- Maintain full ownership of your home with a Lifetime Mortgage
A Lifetime Mortgage is just like any other mortgage. Your lender places a charge on your property to ensure that they will get paid when the house is eventually sold, but you always remain the legal owner of your property.
- No need for monthly repayments
The interest on a Lifetime Mortgage rolls up meaning that when the property is eventually sold, the original amount borrowed plus the total of the rolled up interest is repaid. You are not required to make any monthly repayments. - Make repayments if you want to
Some people would like to make repayments into their plan and it is always your choice if you wish to do that. Most plans will allow a maximum amount that can be repaid without penalty, typically 10% of the amount borrowed. - Access a cash reserve facility within your plan
Depending on the amount you wish to take, you can choose to have a reserve facility that you can access in the future should you wish to do so. - Spend the cash on the things that are important to you
It is your money and you can choose to spend it in any way you wish. - Retain the option to move home based on lender criteria
All plans give you the right to move house if you wish to, subject to the lender approving your new home. - Benefit from a no-negative-equity guarantee
There is a complete guarantee that the amount you owe can never be more than the total value of your home. - Fix your interest rate for life
The interest you are charged will remain the same throughout the life of the plan meaning you will always know how much you will owe in the future.
