Photo by Keith Tanner on Unsplash
If you're a homeowner over 55, you may be considering tapping into the equity you've built up in your property. Last year alone, those aged 55 and over accessed an astonishing £4 billion through equity release schemes. If you're thinking about this option, it's crucial to arm yourself with the right knowledge.
Equity release allows you to access the value of your home as a tax-free lump sum, potentially giving you up cash to use as you wish. Some people use the funds to achieve long-held dreams like travel, home improvements, or providing financial support to loved ones. Others use it to clear debts and improve their financial situation in retirement.
If you qualify, releasing equity is a relatively straightforward process that could put money in your account within a month, without requiring you to move out or make any repayments. However, it's a significant financial decision that requires careful consideration and due diligence.
Before taking the plunge, make sure you can answer these three essential questions:
Have you chosen a provider approved by the Equity Release Council? The ERC is an industry body that vets equity release providers to ensure they meet strict standards and offer products that prioritize consumer protection. Choosing an ERC-approved adviser gives you peace of mind.
Are you protected by a "no negative equity" guarantee? This crucial safeguard ensures that you'll never owe more than the value of your home, even in the unlikely event that house prices crash. Without it, you could risk losing the home you've worked so hard for. ERC members require this protection for your security.
Have you shopped around for the best rates and terms? Interest rates on equity release have reached historic lows, with an average of around 5% and some as low as 3%. However, plans can vary significantly. Consult an independent adviser who can scour the market to find the deal that offers you the most money at the lowest cost.
The most stress-free way to explore your options is to have a free, no-obligation chat with an ERC-approved adviser who specializes in equity release. They can assess your unique circumstances and guide you through the process step by step, all from the comfort of your home.
To get an idea of how much tax-free cash you could unlock, take a minute to try our free Equity Release Calculator. There's no cost or commitment, just helpful information to assist you in deciding if equity release could help you achieve your financial goals in retirement.
Our service is 100% free to use and you are under no obligation to accept any of the quotes or product offers that you receive. Calls are recorded for training and monitoring purposes.
Equity Release and lifetime mortgages are fully regulated and any lifetime mortgage plan recommended will be endorsed the Equity Release Council.We work with a carefully selected panel of Equity Release Specialists. Once you have accepted our terms, you will be introduced to them to look after the administration of your chosen plan. All advisers will by fully authorised and regulated by the FCA, Financial Conduct Authority.
Mature Money Matters does not administer Equity Release services. You may be referred to our approved providers if we feel that this is appropriate and the best solution in your situation. Mature Money Matters may be paid a referral fee for introducing you to one of our approved providers. The info contained herein does not constitute financial advice.