What is equity release?

Equity release allows homeowners to release tax-free money from the property they live in with no need to move out and with options to make no monthly repayments. It is a long-term loan that’s repaid using your home once you pass away or require long-term care that is increasingly popular among those aged 55 and over who are approaching retirement to boost their finances.

tax-free cash

released from your home

Available to

homeowners aged 55+

No advice fees

and Low-interest rates
Equity Release will reduce the value of your estate and can affect your eligibility for means tested benefits.

Enquire about equity release

Available equity release options

Home reversion plans

Available to homeowners aged 60 and over home reversion scheme allows you to sell a percentage of your property to a provider, which pays you a tax-free lump sum in return. Although the lump sum is significantly less than the market value of your home, you remain a co-owner of the property (or a beneficial owner if you sell more than 50%) and continue to enjoy the right to live in it for the rest of your life.

Lifetime mortgages

You can take out a lifetime mortgage, which enables you to borrow money against your house, from the age of 55. You can choose to either take smaller payments frequently or as and when you need them, or a lump sum.

Drawdown lifetime mortgage
A drawdown lifetime mortgage allows you to take smaller payments frequently or as and when you need them, after an initial lump sum, and you only pay interest on the money released.
Lump sum life mortgage

A lump sum lifetime mortgage gives you access to a one-off sum of cash, and you’ll still own your own property. There are different ways to pay the interest too – either roll-up or interest only; or a hybrid where you can change from interest-only to roll up at any point.

Things to consider

Here are some tips important for all those considering taking Equity Release:

  • Consider carefully how much and when to borrow.
    Remember that the sooner you borrow, the more interest you will have to pay.
  • Ensure you use a company that belongs to the Equity Release Council.
    This way, you get a ‘no negative equity guarantee’ warranty, which means your estate will not owe more than your residence is worth.
  • Get professional advice.
    You should discuss your plans in regards to equity release with a mortgage broker or financial adviser that has an equity release qualification to ensure you get the deal tailored to your needs.
  • Keep in mind it can affect your benefits.
    In certain circumstances, having cash rather than a property can affect the benefits you’re entitled to like pension credit. Speaking to a professional about the equity release will help you make the right decision that will boost your finances and make the most out of your retirement.

Buy to Let Mortgages

When buying a property with an intent to rent it out there is a special type of mortgage that you need to apply for. We actually have advisers with extensive experience and knowledge about buy-to-let mortgages, so give us a call or check out bestbuytolet.co.uk for more details.