What is Equity Release?

taking out equity release
Equity release plans enable those that are at or near retirement age to unlock tax-free cash that is tied up in their property, so they can spend it as they wish.

Benefits of Equity Release:

  • Depending on the plan you choose you will receive a lump sum or a series of payments
  • There are no monthly repayments
  • The money is tax-free as it is yours in the first place
  • You can spend the money as you wish
  • You can stay in your home for life or for as long as you choose
  • There are a wide range of equity release plans available, which can be tailored to your individual needs

Who Qualifies for Equity Release?

To qualify for an equity release scheme you must:

  • Be over 55 (both partners if a couple)
  • Own a home worth at least £70,000
  • Be living within the UK mainland or in Northern Ireland.

Choosing Between Equity Release Rates Best Suited to You.

Ensure that you choose the Equity Release scheme that is most appropriate for your circumstances. The following are the four main schemes that you can benefit from:

  • The lifetime mortgage provides a tax free lump sum and enables you to retain 100% ownership of your property. Repayments, including accrued interest, are made when you die and your property is sold.
  • drawdown lifetime mortgage is similar except that it offers greater flexibility. Rather than being forced to take all of your cash in one lump sum you can access the money as and when needed. This may mean that you accrue less interest.
  • An interest only lifetime mortgage provides you with a lump sum of cash but, instead of accruing interest you make regular repayments to cover the cost of interest. When you die, only the capital that you have borrowed will be taken from the sale of your property.
  • home reversion plan means that you sell some or all of the property. You will be allowed to remain in the property, rent free, but it will typically pass over to the lifetime mortgage company on your death.

Click here to find out more about Equity Release Schemes

Professional Guidance from The Right Equity Release

Talk to one of our professional advisers if you are unsure which of these equity release schemes is best suited to you. Our advisers are not only friendly, but knowledgeable and helpful too. A trained experienced adviser will spend time with you in the comfort of your home understanding what you are trying to achieve. They will discuss your options and personal circumstances to ensure that you choose the right scheme for your requirements.

Peace of mind…Remain protected throughout

Presently, the Financial Conduct Authority (FCA) regulates all plans including Home Reversion and Lifetime Mortgage Plans. Our advisers adhere to their strict rules and guidelines whilst, advising on a particular scheme. We only recommend equity schemes from lenders who are members of The Equity Release Council (formerly SHIP).

Compare Equity Release Rates

The Rate that you receive will have a big impact on the amount that you must repay when your property is sold. We compare the best equity release rates to ensure that you get the best deal on the most appropriate scheme for you. Typical rates have dropped in recent years and this means that you can really benefit you in the long run as it offers reduced rates and lower repayments. We make the process simpler by bringing together details of some of the best deals available.

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