An Introduction to Equity Release
Many people approach retirement owning the family home and would like to access some of the value stored in its bricks and mortar. Downsizing is one option but, if you still need the space or a move seems too daunting, equity release may provide a last-resort solution. If you are 55 or older, it could turn some of your home’s value into cash, without forcing you to relocate; but it’s no magic money tree, as plans may be expensive and often inflexible.
TWO WAYS TO RELEASE EQUITY
There are two main types of equity release: lifetime mortgages and home reversion plans. With a lifetime mortgage, you borrow a percentage of your home’s value but retain ownership. Under a home reversion plan, you sell an agreed proportion, or all of, your home to the plan provider. Both types are subject
to Financial Conduct Authority (FCA) regulation and each has its pros and cons.
To read more about Equity Release, please view the guide below.