Is Equity Release for you?

In the right circumstances releasing capital from your property through an Equity Release scheme can be an ideal way of raising money. However, it will not suit everyone and it is important to seek legal and financial advice before making any decisions.

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Generally suitable for:

Equity Release schemes can be beneficial in the following circumstances:-

1. People aged 55 and above.

2. Boosting your income in retirement.

3. Raising money for that holiday of a lifetime or to help with home improvements.

4. Helping children or family members with financial problems.

5. People who are happy to leave part of their home to their loved ones on death.

6. Consolidating existing debts whilst not having to make any monthly repayments.

7. Inheritance Tax Planning.

8. Moving to a more expensive property such as a bungalow for those with concerns on their mobility.

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Not generally suitable for:

However, Equity Release will generally not be suitable in the following circumstances:-

1. People under the age of 55

2. People who receive means tested benefits as these could be lost if you release money from your property. Although the drawdown schemes can allow applicants to keep any savings below the level that would affect their benefits.

3. People with substantial savings as it is better to use any savings before considering an equity release.

4. People who want to leave the full value of their property to their loved ones on death.

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A Lifetime Mortgage is not suitable for everyone and may affect your entitlement to means tested benefits, so it is important to seek financial advice before taking any action. If you are considering releasing equity from your home, you should consider all options available before equity release.

The interest that may be accrued over the long term with a Lifetime Mortgage, may mean it is not the cheapest solution. As interest is charged on both the original loan and the interest that has been added, the amount you owe will increase over time, reducing the equity left in your home and the value of any inheritance, potentially to nothing.

Although the final decision is yours, you are encouraged to discuss your plans with your family and beneficiaries, as a Lifetime Mortgage could have an impact on any potential inheritance. We would also encourage you to invite them to join any meetings with your Financial Adviser so they can ask questions and join in the decision, as we believe it is better to discuss your decision with them before you go ahead.

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