When and why to release the equity in your property

When you are no longer working to generate a regular income, things can start to get tougher economically. Then, just when you most need more money, you’ll find it can be more difficult to raise.

If you are aged over 60, on a low income, and your mortgage is paid off, equity release could be right for you. You may need additional income, or to raise a lump sum for the holiday of a lifetime, a new car, rainy day money, or to help your children purchase their own home.

The amount you can release from your home depends on the value of your property. The older you are, the more you can borrow.

There are two main types of equity release mortgage:

Interest accrues annually
Interest is repaid each month

You don’t have to make any repayments as long as you live.


Downsizing might not be the answer

If you own your home, you might consider downsizing to release some of its value. However, this might mean you have to move some distance away from your circle of family and friends. There is also a risk that it doesn’t yield enough capital for you to live on.


You can stay in your own home

We only recommend equity release schemes with a ‘no negative equity’ guarantee. This means you get complete security of tenure, and can stay in your own home for the remainder of your lifetime or until you go into long-term care.


You can pass on your home after death

Even if you’ve already released some of the equity for yourself, you can pass on the balance of the property value to your heirs.


We can help!

Equity release is also known as a ‘lifetime mortgage’ or ‘home reversion plan’. We will advise whether or not it is suitable for you. It is also important to discuss the issues with your family, and instruct a solicitor who is familiar with equity release schemes.

To fully understand the features and risks, ask us for a personalised illustration. There is usually no introducer fee to pay, as the product provider covers the cost of our services. You just pay an admin fee of £195 (non-refundable).

To arrange your initial appointment, please contact us on 020 8891 0711 or hello@globeifa.co.uk