If you are looking to have a little extra money in your retirement years, equity release is well worth looking into. The Equity Release Council ensures that safeguards are in place so that you can easily and safely tap into the equity in your home without being forced into making monthly repayments.
What do you need to know about equity release?
It is fair to suggest that equity release plan come with a distinct list of pros and cons. You must take time to carefully consider both sides of the coin before deciding if equity release is right for you.
Simply put, an equity release plan allows you to free up cash from the equity in your home. This is becoming a common practice among people looking for extra money for retirement or as a way to fund an unforeseen expense. While an equity release is an excellent option for some, there are other alternatives that you should explore before making a decision. Some mortgage lenders do not have a maximum age at end of term.
We are happy to talk to you about different options, as well as the pros and cons of each, to help find the mortgage solution that best suits your specific needs.
What types of equity release are available?
Lifetime Mortgages and Home Reversion plans are the two types of equity release available to you, both of which are regulated by the Financial Conduct Authority. Homeowners who use an equity release product can choose to draw a lump sum or regular smaller amount from the value of their home while still living there.
Lifetime mortgages are available to people aged 55 and over. These mortgages allow you to borrow a portion of the value of your home. While interest is charged, no payments are due until the house is sold or you pass.
Home reversion is usually only available to those aged 65 or older. With this plan, you sell a portion of your home to a provider at less than market value. You can continue to live there until you pass or move into a retirement home. When the home is eventually sold, the provider will receive the same share they originally bought for whatever the house sells for as repayment.
If either of these options seems like a good fit for you, please contact us to make an appointment where one of our friendly mortgage specialists can talk to you about the plan that works best for you.
When performed correctly, equity release should have zero impact on your tax position or state benefits. That said, circumstances may vary from person to person.
Here ate Yes Specialist Mortgages, we have a professional team that is qualified and ready to help you take the steps required to put either of the plans mentioned above into place. They can break down all the options, while also making you aware of how your tax, state benefits, and other obligations may be impacted.
YES Specialist Mortgage Services
At Yes Specialist Mortgage Services we are “Specialist Mortgage Advisors “with particular expertise in sourcing and arranging specialist lending products, including buy to let, residential, commercial, development finance and later life lending.
We are committed to offering you the highest possible standards of service. We can undertake the whole process from answering the initial questions through to handling multiple product applications. Ensuring that everyone gets treated with the same urgency and maintaining your best interests are our main goals irrespective of the value of the mortgage.
We recognise that both we and our customers have everything to gain if we look after your best interests and treat you fairly in all aspect of our dealings with you.