Equity Release – Simply a ‘Loan’ You Can Pay Back Like Any Other

1st March 2019

Releasing equity from your property in the form of a Lifetime Mortgage can often be a far less expensive way of taking out a loan nowadays with many plans offering fixed interest rates as low as 3.7% per annum

Releasing equity from your property in the form of a Lifetime Mortgage can often be a far less expensive way of taking out a loan nowadays with many plans offering fixed interest rates as low as 3.7% per annum.

Despite recent media coverage suggesting that Equity Release is both a risky and expensive way of accessing money from the value in your property, taking out a Lifetime Mortgage (which is the other term used to talk about Equity Release) works in a very similar way to any other mortgage loan: You can choose:

  • Interest only options – you only pay back the interest on the loan
  • Repayment plans – you pay back both the interest and the capital on the loan

However, a Lifetime Mortgage also allows you many other options that regular mortgages cannot:

  • You can allow the interest to roll up - the loan is then repayable when you die or go into long term care
  • There is a ‘No negative equity guarantee’ – you will never owe more than the value of your estate.

Who would benefit from taking out a Lifetime Mortgage?

A Lifetime Mortgage may be a good option for you if:

  • You have no beneficiaries
  • You are cash poor but asset rich
  • You have the ability to pay back the loan and want a lower rate of interest than other financial providers can offer.
  • You cannot pay back the loan but desperately need money for personal reasons: health care bills, care home expenses, obligatory home repairs or renovations
  • You want to supplement your pension and do not want to struggle in your retirement
  • You want to stay in your own home and do not want to have to move for financial reasons

So if you are thinking of taking out a loan, why not consider taking out a Lifetime Mortgage and let your house help you to achieve your financial goals whilst still living in it.

If you would like to discuss your situation in confidence, and without charge or obligation of any kind, please contact Kevin Woods on 01489 454545, or at kevin.woods@therightequityrelease.co.uk and he will be happy to help you.

Why not get in touch and see how we can help?

Equity release is the answer to so many financial questions. If you would like to know more about it, and see if it could be the right move for you, please book an appointment or request a call-back