Equity Release services are referred to a third party. Neither Muuvin nor PRIMIS are responsible for the service received.
If you're over the age of 55, equity release offers you a way to use the value of your home to raise money. You won’t have to make monthly repayments but the debt will eventually have to be repaid – with interest.
It is advised that you seek Independent Legal advice before entering into a legally binding equity release contract.
Why do people consider Equity Release?
- To provide an additional income in retirement
- To provide lifetime gifts to relatives
- For home improvements
- For holiday home purchase
- To fund long-term care
You may have other ideas - there is no restriction on how you use the funds.
However, since equity release can be an expensive way to raise money when taking into consideration payment of arrangement fees or interest, you should also consider the following:
- Sell your home and live in rented accommodation
This option involves selling your house and investing the proceeds in income-producing investments. The income from these investments is then used to rent a property and for your living expenses. You would only really be able to generate sufficient income to live on if your property was sold for a large sum of money.
- Benefits entitlement
Have you checked to see that you are getting all of the benefits you are entitled to? It may be that you are entitled to benefits that make equity release unnecessary. Also, equity release could affect your entitlement to means-tested benefits so it's worth speaking to your local authorities to consider these areas first. They may be able to offer you grants or assistance with essential home improvements and alterations that you would otherwise pay for yourself.
- Your Savings & Investments
If you have savings or investments you may wish to consider this alternative.
- Rent out a room
If your house is sufficiently large you might consider renting out a room to bring in regular extra income.
- A smaller home
If your family have grown up and they are off on their own financial journey now, your current home may be too big for your needs and you could consider something smaller and more economical to run. In this case, you could consider purchasing a smaller property, leaving you with a lump sum on completion.
Equity release has to fit with your needs, circumstances and preferences, where the benefits need to outweigh the drawbacks and be more suitable than alternative methods of raising funds.
A Lifetime Mortgage will reduce the value of your estate and may affect your entitlement to means-tested benefits and tax status. The impact of not servicing monthly interest payments on a Lifetime Mortgage is that the outstanding debt can grow rapidly, thus reducing the value of your estate. For example, if the interest rate was 7% a year, a £50,000 loan would double to £100,000 after 10 years assuming no repayments are made. This is an example for illustrative purposes only and personalised advice and recommendations should be sought from a qualified professional. You are strongly advised to register a lasting power of attorney. This will allow your affairs to be managed by somebody else if your mental abilities significantly decline.
Brilliant service from Daniel. He handled everything expertly and was professional throughout. He ensured I fully understand the terms and conditions of my mortgage. Will be using Daniel again in the future
Great service, quick to answer all queries and works hard to get the best for clients,
Dan was brilliant from start to finish! Took all the stress away from what can be a very stressful process. Would highly recommend him and I’ll be using Dan and his services again in the future.
By far the best mortgage advisor around! Would highly recommend to anyone who’s looking for their first mortgage or about to renew. I recently renewed my mortgage and Dan saved me a fortune every month! Thanks again.
I used Daniel for remortgage of my property - answered any questions with clear expert knowledge and can only recommend him for others.
