You may be wondering if equity release is the correct option for you. Whether you’re looking to fund that dream holiday, improvement your home or help a family member with school or university fees, or funding a deposit for your children to get on the property ladder, equity release could be the answer.
Being regulated by the Financial Conduct Authority (FCA) Equity Release plans offer a safe way to unlock some of the tax-free funds that may accessible in your property. You want to take this money as a one off lump sum or by instalments after the initial release, either way may be available.
Here are a few examples of why you may decide on equity release.
Pay off your existing Interest only mortgage and/or any debts to free up money each month.
Carry out home improvements or make alterations to assist with any disabilities Take that once in a lifetime holiday.
Purchase that classic two seater you’ve always dreamed of.
Helping family with financial needs, be it a deposit on a home for your children or paying school fees.
And you will remain in your own home, no downsizing, allowing you to stay comfortable in your own home without the need, cost or stress of moving from your home.
Should you decide a lifetime mortgage is right for you, then rest assured that all plans recommended by Lifelink Ltd meet the Equity Release Council standards that come with the ‘no negative equity’ guarantee. This protects you and your family making sure they aren’t left in debt from your lifetime mortgage when you pass away or permanently move into a residential care home.
As with anything there are some drawbacks with equity release. We understand that equity release isn’t for everyone, and we’ll never say it’s the right option for you unless we are certain.
Lifetime mortgages are the most popular type of equity release, the mortgage is secured against your property. Should you choose you can make the full monthly interest payments however you are free to make no monthly payment at all. However any interest not paid plus rolled up interest is added to the loan and repaid when the plan comes to an end. That’s normally when the last-remaining applicant either passes away or moves into long-term care. Your home will need to be sold within a year of this event.
With a Lifetime mortgage even though you still retain full ownership of your home, Equity release will reduce the value of your estate and may affect your entitlement to means tested benefits. Advice should be taken from one of our expert equity release advisers, who will explore all Lifetime mortgage options and only recommend a plan if its suitable for you after reviewing any other possible options.
If you would like to find out more about equity release our friendly experienced team can be contacted on 01189 349800 who will be happy to discuss all aspects of equity release.
Your initial consultation is free and our fee is only payable should you decide to go ahead with a plan.