Equity Release/Life Time Mortgages

by Malcolm Jones

6 months ago

Equity Release/Life Time Mortgages

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Equity Release/Life Time Mortgages

Question: Why is Equity release such an attractive option for Homeowners?

Answer: Because it can be the solution to many quandaries

Equity Release is a means of retaining your home, whilst obtaining a lump sum or a steady stream of income and boosting retirement income. It is available if you are over the age of 55.

There are many advantages and uses of Equity Release. The advantages include;

  • It can reduce Inheritance tax.
  • No negative equity, protects the borrower in the event of a downturn in the housing market.
  • It is possible for the client to stay in their own home and not to have to make any payments in their lifetime.
  • It is fully regulated by the Financial Conduct Authority (FCA).

The equity in people’s homes is often their largest asset. It can bridge the gap between the comfortable retirement that people want and the retirement that they can afford from their savings and a state pension.

The popular uses of Equity Release include:

  • 40,000 mortgages will mature every year and it is estimated that 10,000 do not have a repayment strategy in place. Equity release means that you can remain in the property and not have to sell.
  • Releasing the equity can provide the money to purchase an investment property and thereby increasing the client’s income and asset value.
  • Clients often use the money to help family members get on to the property ladder.
  • It can provide for a well-earned holiday of a lifetime.
  • The client will be free of mortgage payments, thus reducing their monthly outgoings and freeing up cash for more enjoyable things.
  • The money can be used for home improvements.

As this involves making some very important decisions, it is essential to get advice from a qualified Equity Release adviser.

If you would like assistance with Equity Release or any other type of property finance please complete the contact form below and I will be happy to help.

Contact Malcolm Jones

Commercial Finance, Development Funding and Bridging Finance
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