Equity Release

Lifetime Mortgages are financial product that allows homeowners to access the equity in their property without having to sell it. Essentially, it is a way for homeowners to convert the value of their property into cash. Usually equity release is used to supplement your pension, home improvements or to help you reach your goals. However, it is important to carefully consider implications of equity release. It is important to note that while there are stigmas associated with equity release, it can still be a valuable option for some homeowners who need access to funds. 

With anything there are advantages and disadvantages that surround equity release, speak to one of our expert advisers to see if equity release is suitable for your circumstances. It is important to seek independent financial advice before proceeding with any equity release product.

Disclaimer

A Lifetime Mortgage will reduce the value of your estate and may affect your entitlement to means-tested benefits and tax status. The impact of not servicing monthly interest payments on a Lifetime Mortgage is that the outstanding debt can grow rapidly, thus reducing the value of your estate. For example, if the interest rate was 7% a year, a £50,000 loan would double to £100,000 after 10 years assuming no repayments are made. This is an example for illustrative purposes only and personalised advice and recommendations should be sought from a qualified professional. You are strongly advised to register a lasting power of attorney. This will allow your affairs to be managed by somebody else if your mental abilities significantly decline.

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