Is Equity Release suitable for me?
If you are cash poor but asset rich - i.e. you have a low income or pension and have money tied up in your home, then equity release could be a good way of boosting your finances without having to move.
In the right circumstances releasing capital from your property through an Equity Release scheme can be an ideal way of raising money.
Equity Release won't suit everyone. It's important to seek financial advice before making any decisions.
Generally suitable for:
Equity Release schemes can be beneficial in the following circumstances:-
1. People aged 55 and above.
2. Consolidating existing debts whilst not having to make any monthly repayments.
3. People who are happy to leave part of their home to their loved ones on death.
4. Helping children or family members with financial problems.
5. Boosting your income in retirement.
6. Raising money for that holiday of a lifetime or to help with home improvements.
7. Inheritance Tax Planning.
8. Moving to a more expensive property such as a bungalow for those with concerns on their mobility.
Not generally suitable for:
However, Equity Release will generally not be suitable in the following circumstances:-
1. People under the age of 55
2. People who receive means tested benefits as these could be lost if you release money from your property. Although the drawdown schemes can allow applicants to keep any savings below the level that would affect their benefits.
3. People with substantial savings as it is better to use any savings before considering an equity release.
4. People who want to leave the full value of their property to their loved ones on death.
Equity release may involve a lifetime mortgage or a home reversion plan. To understand the features and risks, ask for a personalised illustration.
Equity release may not be right for everyone. It may affect your entitlement to state benefits and will reduce the value of your estate.
Check that this mortgage will meet your needs if you want to move or sell your home or want your family to inherit it. If you are in any doubt seek specialist advice.