This will depend on several factors, including how much cash you need, your property’s value and your health.
What is a lifetime mortgage?
A loan that is secured against the value of your home, typically at a fixed interest rate.
What are the benefits of a lifetime mortgage?
The loan usually doesn’t have to be paid back until you die or move into care, you remain the owner of your property and you can still move into a new home.
What is a home reversion scheme?
A scheme which allows homeowners to sell part or all of their home to a private company. This is in exchange for a cash lump sum or regular payments.
What are the benefits of a home reversion scheme?
You can live in your home rent-free, ring-fence a percentage of the money for later use and the equity released is tax free.
Who can qualify for an equity release scheme?
You must be at least 55 years old for a lifetime mortgage and over 65 for a home reversion. You also must own and live in the property and able to release enough equity to pay off any outstanding debts.
Should I receive my money as a lump sum or regular payments?
A lump sum lets you manage your money yourself, but regular payments give you peace of mind that you’ll receive an income for the rest of your life.
Can I release equity if I haven’t yet paid off my mortgage?
Yes, but the released cash should be used to pay off the outstanding mortgage as a priority.
How long will it take to access the funds?
Timescales can vary, but it typically takes less than 12 weeks from the day your application is received.
Will my partner have to move when I die?
If you have a joint scheme, your partner can stay in your home for as long as they wish. If the scheme is just in your name, the house will be sold.
What if I go into care?
If you move out of your property, the equity release plan will end and your home will be sold. If your partner wishes to remain in the property, they can do so until they pass away or move into care too.
Will I still own my home?
You remain the owner of your home if you take out a lifetime mortgage but with a home reversion scheme, you won’t be the sole owner of your home. With both plans you can still remain your property for as long as you live.
Who is the Equity Release Council?
An organisation which promotes safe equity release schemes and safeguards the interest of homeowners.
Can I still leave an inheritance?
With both a lifetime mortgage and a home reversion scheme, you can ring-fence a percentage of your property for your family’s inheritance.
Let your home help you with Equity Release
Release money from your property and have a successful retirement.