How Does Equity Release Work

How Does Equity Release Work?

Equity release works by allowing homeowners aged 55 plus to release money from their home without any monthly repayments. There are two types of equity release; 

  1. Lifetime Mortgages and
  2. Home Reversion plans. Both of these are regulated by the Financial Conduct Authority.

By using an equity release product, you could have the option of a lump sum or regular smaller sums from the value of their home, while remaining in your home.  Only when you are no longer able to live in your home will the lender be paid.

Equity release can play an important role in retirement funding: many of us have struggled for years to pay the mortgage and want to stay put, but otherwise can’t afford it.  Others these days use Equity Release “backwards” and use it to buy a home which is more expensive than they would normally be able to afford – and still with no repayments while you live in it. and the flexibility and safeguards which are built into plans that

The flexibility and safeguards built into plans that comply with the Equity Release Council product standards enable thousands of home owners every year to tap safely use some of their property wealth without having to worry about making monthly repayments.

There are all sorts of advisers out there and we always refer enquiries to independent firms who are able to offer products from across the market.  Going to a firm which only offers their own products restricts your choice, and will often result in you getting a significantly worse offer.

Equity release can impact on other aspects of planning, and on State Benefits, so it is vital to discuss the issues in detail with a fully qualified Equity Release financial adviser.  A good one will give you plenty of time to review and consider the options.   What is right for you won’t necessarily be right for a neighbour.

If you would like to be introduced to an independent Equity Release expert, without obligation, just pop your details in the form below.   You can add as much or as little information as you wish.

 

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