Why choose equity release?

Why should I release the equity in my home with a lifetime mortgage?If you're a homeowner aged 55 or over, releasing equity through equity release can be an effective way of enhancing your retirement without having to move house.

You will receive a cash lump sum or regular income to spend entirely as you wish

It is important to consider the advantages and disadvantages of such a scheme, and our advisors will be happy to discuss any concerns you may have.

Advantages of Lifetime Mortgages

  • You will receive a cash lump sum or a regular income to spend entirely as you wish
  • You can continue to live in and enjoy your home
  • You are free to move to another suitable home without financial penalties
  • Equity release can be a way of cutting your inheritance tax bills
  • With all of the schemes we reccomend, there is a "no negative equity" guarantee, which means that you will never owe more than the value of your home

Disadvantages of Lifetime Mortgages
  • It could effect your state benefits - please ensure you have discussed this with your local benefits office
  • If you live in your home for many years and house prices do not increase sufficiently, there may be no equity left in the property for your beneficiaries to inherit
  • There could be extra charges to pay if you decide to repay your loan early
  • You won't be able to use your property as security for another loan or mortgage

Advantages of Home Reversion

  • You will receive a cash lump sum or a regular income to spend entirely as you wish
  • You do not have to worry about the roll up of interest.
  • You know what proportion of your home will be used from the outset and guarantee to leave a fixed proportion of your equity to your estate.
  • You may potentially reduce any inheritance Tax liability you may have

Disadvantages of Home Reversion

  • It could affect your state benefits - please ensure you have discussed this with your local benefits office.
  • You will be selling a proportion of your home for less than its market value.
  • A home reversion plan may represent poor value if only in force for a short period of time.
  • You will only benefit from raising house prices on the element you still own.