What Is Equity Release?
The Concept Explained:
With house prices having risen considerably over the past few decades, UK’s over-55 homeowners are finding themselves sitting on a large amount of equity.
Traditionally, the only way to make use of this equity was to sell your home and downsize.
But what if you want to stay in your current home, and still make use of your property wealth? If this is the case, releasing equity could be the right thing for you.
Enjoy the lifestyle that equity release can provide…
What Is Equity?
Simply put, the equity that you have in your home is the value of your home minus any loans secured against it. For most homeowners this will be any outstanding mortgage amount.
As an example, if your home was worth £200,000 with a £50,000 mortgage secured against it, you would hold £150,000 equity.
There are many ways you might decide to use a tax free cash lump sum…
Why Release Equity?
When you decide to release equity, there are many ways that you might decide to use your tax-free cash lump sum. If you are looking for a little inspiration however, we have detailed some of the most common reasons for releasing equity and these are explained later.
Equity Release is becoming a more popular option
In later life and often when retired, many people today find themselves in a position of being asset rich but cash poor. In other words, they are only receiving pension income and are just managing to pay the bills. There is little enough left over to fund holidays or pay for property repairs or even help their children or grandchildren with a deposit for their first home. If you are over 55 and a homeowner and all your wealth is tied up in your property, then Equity Release may be the answer to some of your current problems today.
More and more people are considering equity release as a more popular option in giving you peace of mind, in that, you won’t have to leave the home you love, and at the same time achieving some of life’s personal goals, aspirations and memories yet to be made.
Many thousands of people are already enjoying the benefits of unlocking some of
the cash from their home through equity release.
The equity release market is regulated by the Financial Conduct Authority and the Equity Release Council.
These regulatory bodies have helped offer peace of mind to customers knowing that they have additional protection in place.
Popular Reasons For Equity Release
Purchase A Holiday Home
Pay off an existing mortgage or other debt
To increase retirement income
To help family to purchase a new home
To Go On A Holiday of a lifetime
Buy a new dream car
This is a Lifetime Mortgage, to understand the features and risks ask us for a personalised illustration which will explain all charges and fees relating to the product.