From repaying your existing mortgage to taking care of your family, there are many ways to have a successful retirement. But one thing you can’t get away from is the need for flexible finances that let you do the things you love.
Equity release helps thousands of people to unlock some of the cash in their home and improve their lives. If your finances are being squeezed, or you're looking for a way to make more out of your retirement, then your home could help.
An equity release plan allows you to release some of the money tied up in your home, in the form of tax-free cash. This money can be used however you wish, enabling you to pay off your existing mortgage, make home improvements, gift your family a living inheritance... or find your own way to turn retirement into something special.
Understanding equity release
Equity release is available for homeowners aged between 55 and 95, with a property worth at least £70,000. It enables you to release some of the equity tied up in your house as cash that you can spend however you wish.
- There are many different features designed to protect you and help you make the most of your equity release. This includes inheritance protection to help you guarantee an inheritance for your family, and a no negative equity guarantee so that you never owe more than the value of your home
- The most popular type of equity release plan is a lifetime mortgage, which allows you to remain the owner of your home. A lifetime mortgage is a loan secured against your home
- The money released using a lifetime mortgage can be taken as a one-off lump sum, or as part of a drawdown plan. With a drawdown plan you can release additional money in stages, and only pay interest on the amount that you actually release
- Equity release will reduce the value of your estate, and may also affect your entitlement to means-tested benefits