What is Equity Release?
Put simply, Equity Release schemes are a way of giving people access to cash in retirement, via property. It is a way of extracting money from a property. It is often used by people with low savings.
Can anyone apply for Equity Release?
There are legal age restrictions and you do have to be 55 or over to apply for Equity Release schemes.
What are the types of Equity Release?
- Home Reversion
- Lifetime Mortgages
What is Home Reversion?
Home reversion is an equity release scheme where a company buys a share of your property’s value in return for payment to you. Typically, this is 30-60% of a home’s value according to the Money advice Service.
What are Lifetime Mortgages?
Sometimes called a fixed term mortgage, you borrow money on your existing property and the debt is “rolled up” until you sell the property. This is now FCA regulated with legal guarantees that you will not be left with negative equity.
If you are considering Equity Release, you must take independent financial advice.
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To understand the features and risks of a lifetime mortgage, please ask for a personalised illustration.
*We do not offer advice on Equity Release but will recommend you to a third party.