Should i consider equity release

However it can be used to help you manage your debt or to repay a mortgage. Interest only lifetime mortgage : This allows you to borrow money against your home while still living there. When your home is sold, your mortgage will be repaid. Instead, the interest is added to your mortgage. When your home is sold both are repaid. Home reversion plans : Lets you sell your home, or a share of your home, in return for a lump sum of money.

A retirement mortgage is secured against your home and is repaid only when your property is sold. These are breakdowns of the types of equity release available. This will outline the features and risks that are relevant to your situation and equity release plan. Releasing equity from your home is a big decision and there are many things to consider before going ahead with it:. It could be that there are better alternatives available. Some of these could be:. Should I take out equity release?

Equity release: how your debt grows What are the alternatives to equity release? Using equity release to pay for care in later life Where can I get equity release advice? Plan your finances. Use our pension calculators to build a financial picture for your retirement. Pension tax relief calculator Pension tax calculator Income drawdown calculator.

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Continue reading. What is equity release? Lifetime mortgages. Home reversion. All 4 articles in guide. Pension age loophole closed to combat scammers. Autumn Budget state pension to rise by 3. Related guides for You're retired. What is the state pension? Find out what the state pension is, how you qualify and hear real people's experiences of claiming the state pension. In Tax. Income tax on your pension.

Tax on pensions Married couple's allowance Age-related tax allowance. Once the loan has been repaid, any remaining equity would then be paid to your children. Lenders will charge more than the standard mortgage rates as they are having to wait a long time to get their money back and are also taking a risk that your property will always be worth more than the mortgage.

Yes you can repay an equity loan at anytime however you may incur additional admin fees or early repayment charges. There are schemes that let you repay some of the interest on a regular basis which may be worthwhile if paying off your loan is a consideration. You can also move house if you wish, subject to the size of your outstanding loan and the value of the new property. Your adviser will help you explore all the options before deciding if equity release is a good or bad idea for you.

Potentially yes, your benefits could be affected depending on your own individual circumstances. Your adviser can help you with this and you can also go to the Benefits Agency or Citizens Advice for more information.

To ensure you avoid any pitfalls, it's important to get advice from a qualified financial adviser visit www. All Lifetime Mortgage companies in the UK are regulated by the Financial Conduct Authority and as members of the Equity Release Council, you are also protected by their strict rules and guidance. Equity release will not affect your credit score and because the amount of tax free cash you can release depends on your age and the value of your property, your current credit score will not affect you eligibility to apply either.

Equity release can however affect certain benefits you may receive such as pension or universal credit, so it is important to get the advice of a qualified expert before you make any decisions.

Ashley is the founder and managing director at Over50choices. Is Equity Release a good idea in ? Try the calculator Speaking to a specialist adviser will then help answer any questions you may have so you can fully understand the process and how it works. Will I still own my property? Are they for people with large properties? What is the smallest amount I can borrow?

Will my children inherit my debt? Are Equity Release Interest Rates much higher than others? Can I repay the loan if my circumstances change? Will this affect my State Benefits? How can I avoid any pitfalls of equity release?

Your solicitor can also act as a good independent point of advice. Does equity release affect your credit score?