Equity release is a popular option for homeowners and purchasers over the age of 55 who are looking to release some or all the equity tied up in their property or to complete a purchase.
Equity release for homeowners gives the option of tapping into your home’s value by raising a large lump sum or a series of smaller payments.
The lifetime mortgage is the single most popular equity release product in the UK, accounting for around 99% of all equity release products provided by lenders.
With a lifetime mortgage, you take out an entirely new mortgage on your property but retain full ownership of it in the same way as you would with a standard mortgage product. An equity release mortgage enables you to free up some or all of the equity you have tied up in your home, after which the total loan balance along with all interest and borrowing costs are repaid when you die, when you move into long-term care or when you decide to sell.
Equity release schemes have advantages and disadvantages like most financial products, which should be discussed in depth with an independent adviser before going ahead.