Equity release is not the right option for all homeowners but understanding all the facts makes it an easier choice. Moreover, equity release can give people a big financial boost and it is important to consider all options.
Equity Facts To Consider
Our specialist equity advisors will discuss all equity release plans and find the best one for you. It is important to know equity release will reduce the value of your estate and could affect any benefits you are eligible for.
All cash that you release is tax-free, making it a suitable choice as you keep all the money from your provider. There are two types of equity plans which are lifetime mortgages and home reversions. Lifetime mortgages are the most popular form of equity release, allowing you to continue owning your home. Just like any mortgage, this is a loan against your home, so it is important to consider if this is the best option for you.
Despite this, lifetime mortgages typically have no monthly repayments, allowing the interest to roll up and be repaid when your plan comes to an end. As this is a lifetime mortgage, repayment is only expected at death or when entering long-term care.
Equity Release Advisors
Equity release advisors will help you understand how compound interest could add up and what amount of money you could eventually owe. All equity release plans that we will discuss with you have a no negative equity guarantee. This ensures you never owe more than the value of your home. It will also prevent debt being passed on to family members.
Equity can affect your tax position but with all cash you receive being tax-free, this should still put you in a strong financial position. There are alternative options to using equity release plans, which include:
- Ask for Financial Help
- Claiming your Benefits
- Conventional Mortgages
- Downsizing your Home
- Savings or Investments
With a number of equity plans, our advisors can always find the best option for your needs.