Benefits of releasing equity:
- The money you release is completely tax-free.
- Interest rates are very competitive and are usually fixed for the lifetime of the mortgage
- You can stay in your home rather than downsizing or moving to a cheaper area to release some money.
- All lenders offer a no negative equity guarantee so you’ll never owe more than the value of your home when it’s sold.
- There’s no need to repay the loan until you pass away or move out of your home and into long-term care.
- If you wish to repay some of your loan early, there are flexible repayment options for you to choose from.
- After taking equity release, you can still move house providing the new property meets the lender’s criteria at that time.
- You can choose to ring-fence a proportion of the value of your home to ensure a legacy for your estate. (Choosing this option will potentially reduce the amount of borrowing available to you.)
You might want to carefully consider:
- If you gift some of the money to family, they might have to pay Inheritance Tax in the future.
- Interest on a Lifetime Mortgage is calculated daily and added to the amount you owe each month. This means that the amount you owe will increase over time, reducing the equity left in your home.
- The inheritance you leave will be reduced.
- If you pay back some of the loan early, you may be subject to an Early Repayment Charge.
- Releasing equity may impact your entitlement to means-tested state benefits.
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Would you like to give us a little more detail about your enquiry? Or would you prefer to arrange a face to face appointment? Send us an email and one of our advisers will be in touch.
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