Many people in retirement can find themselves owning a valuable family home but only having a small income to live on. An equity release plan allows you to turn some of the capital value of your home into tax-free cash, without having to sell up and move away.
Figures from industry body, the Equity Release Council show that in the second quarter of 2018, homeowners aged over 55 unlocked £971m of wealth from their homes6. Three in five new customers chose drawdown lifetime mortgages, which give them the facility to take their cash in stages.
Equity release isn’t right for everyone, and professional advice is essential. As it will have an impact on the amount of inheritance you leave to your family, it’s a good idea to talk it over with them before going ahead.
Think carefully before securing other debts against your home. Equity released from your home will be secured against it. Your home may be repossessed if you do not keep up repayments.
6Equity Release Council, July 2018