Releasing Equity From Your Home

If your iva has been completed and there is no charge on your property your application for an equity release plan should not be affected.

Releasing equity from your home. You can boost your retirement funds if your pension is too small or you want a lump sum to spend as you wish. If you think home equity release is for you and want to find out more age concern england offers an easy to read fact sheet raising income or capital from your home free of charge from our info line 0800 00 99 66 open 7am 7pm seven days a week. Equity release means withdrawing money from the value of your home either as a lump sum or as a new monthly income. You get to stay in your home but use the value of the equity you own in it to generate a new source of income.

Lifetime mortgages and home reversion plans lifetime mortgages offer greater flexibility to a wider range of customers and for the purposes of this piece we will focus on them. A lifetime mortgage is a complex product and can only be taken out through a professional regulated adviser. Let s say you buy a home for 200 000 with a 20 000 deposit and a 180 000 mortgage. You can do this via a number of policies which let you access or release the equity cash tied up in your home if you re 55.

In its most basic sense the equity in your home is the amount that you own outright without a mortgage hanging over the top of it. The big positive of releasing equity like this is that you unlock some money which you can put to use whether it s to consolidate other debts pay for home improvements or to gift to a family member. The pros and cons of remortgaging to release equity. Releasing equity from your home is a big decision and there are many things to consider before going ahead with it.

Equity release allows you to access some of the value of your home while you carry on living there. But remember you are increasing the size of your loan. Things to consider with equity release. If you re not making interest payments the costs can increase the amount of your mortgage quickly and your borrowing will be higher.

Equity release refers to a range of products letting you access the equity cash tied up in your home if you are over the age of 55. You can take the money you release as a lump sum or in several smaller amounts or as a combination of both. It s easiest to explain through an example. You can release equity from your home with one of the two types of equity release products.

To qualify you need to be a uk home owner aged 55 or older with a property worth at least 70 000. With equity release you can access funds and stay living in your home for as long as you want to.