Need cash fast? Unlock the value of your property and turn it into a cash lump sum with equity release.
Equity Release lets you access the equity (cash) tied up in your home, if you’re 55 and over. Full payment of your mortgage is not required for you to be able to do this. You may be able to take the equity release money in a lump sum or in numerous smaller amounts on which interest has to be paid, or perhaps a combination of both.
how does it work?
Equity release products have two main categories:
- Lifetime mortgage
In this type of mortgage, you will borrow your home or property’s value at a fixed interest rate. You will not have to make repayments; hence, the interest piles up as the amount you pay increases as compared to a normal mortgage. Some other types of lifetime mortgage allow you to the interest back (some will even let you pay the capital) which means the overall cost is decreased. You will be able to raise cash from your property up to an agreed amount plus interest. This option is typically ideal for borrowers aged 55 and up and is one method of equity release.
- Home reversion plan
You need to be aged 65+.
The provider will pay you a lump sum (tax-free) for a portion of your home at below market value. You will be able to continue living in the property without rent until you pass away. Once your home is sold, the proceeds will be based on the percentage that you own and the lender’s as well. The amount the provider gets will increase in parallel if the value of your property significantly increases. You will need to be aged 65 and over to take advantage of home reversion.
Equity Release Brokers
Not sure what’s right for you? Get in touch with UK’s Equity Release experts based in Bournemouth for more information on Equity Release.
EQUITY RELEASE QUOTES
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