Our advice service is expanding and we are proud to now offer equity release to our B Mortgage Services clients. Equity release could be a great way to unlock cash from your home later on in life.
What is equity release?
Equity release is a way to borrow money by releasing cash (equity) from your property. The most common form of equity release is a loan called a lifetime mortgage.
Lifetime mortgages usually aren’t repaid until the last borrower dies or moves into long-term care and the property is then sold, although there are options to make repayments on the capital or the interest if you wish. You can choose to receive a lifetime mortgage as a lump sum or draw down smaller regular amounts.[1]
Is equity release for me?
Equity release could be a great way to get a cash boost later on in life and there are many reasons why people decide to release cash from their property.
A few examples are:
- To gift money to a loved one while you’re still living, as part of a living inheritance.
- To have money for home improvements.
- To meet your later life goals or improve your quality of life.
- To pay off an existing mortgage or debts.
You normally need to be at least 55 years old to qualify for a lifetime mortgage.
Points to consider
There are a few points that may affect how much equity you can release and the interest you may pay.
A lender will typically need information about your age, income and the value of your home.
It is worth noting that taking out cash in the form of a loan against your property can reduce your estate. There are other points to think about too: how much you expect to earn in the future; whether you would like to make regular or one-off repayments; and if you would prefer to pay interest off or let it roll up are all factors to consider when it comes to equity release.
How can we help?
We highly recommend seeking advice from a qualified professional before going ahead with any equity release plans to ensure that you get the best deal possible.
Our qualified advisers can discuss all these considerations with you and assess your personal circumstances, to aid you in making the right decision.
