JC Equity Release
It’s easy to overlook your property as part of your finances, but your home is probably the biggest asset you have.
Unless the value of your property has fallen for a specific reason, the many years you spent paying off your mortgage - along with the overall increase in house prices over the last 20 years - will have likely increased your home equity and therefore the financial potential in your home.
As well as downsizing, equity release is a way for homeowners aged 55 and over to unlock this potential and access some of the money “tied up” in their home.
Is Equity Release Right for You?
If you’re aged 55 and over and are considering later life lending options, equity release could be the solution you’re looking for.
With equity release, you borrow up to a maximum percentage of the value of your home from a lender. The amount you can borrow will depend on the value of your property and your age at application.
You’ll still own your property but will have a loan secured against it. There are no affordability checks or requirements to make monthly repayments, as the interest charged is typically rolled up – i.e. added to the outstanding mortgage balance. The mortgage balance - including the rolled up interest - is only repaid when the property is sold after you or the last surviving applicant passes away or enters long term care.
When it was first introduced, equity release was seen as a “distress purchase” or a product of last resort – but that’s no longer the case. It’s changed dramatically and is now a competitive, popular, later life lending option for homeowners aged 55 and over.
There are many different features available, including:
- Lump sum and drawdown facilities – you can choose to receive the cash in one lump sum or as a smaller, initial release followed by smaller amounts you drawdown as and when you need them. Interest will only ever be charged on the money released, not the full amount available
- Repayment options – instead of allowing the interest charges to roll up, you can make voluntary ad-hoc payments to cover some or all of the interest and maybe some capital. There are lenders that might even allow you to make monthly payments for the interest to stop the outstanding debt from increasing
- Inheritance protection – you can ringfence a percentage of the future value of your home for inheritance. This will decrease the amount you can borrow from the outset, but will ensure a certain percentage of the property’s value goes to your beneficiaries
In addition to these newer features, the industry body - the Equity Release Council - has set clear guidelines for providers and introduced safeguards. One such safeguard is the no negative equity guarantee which is in place to make sure you’ll never owe more than the value of your home.
You’ll need expert equity release advice before you can go about releasing equity. It’s a regulatory requirement.
A qualified, specialist adviser will be able to guide you through all of the options available and find a plan to suit your requirements.
Our Equity Release Partner
Key Partnerships will discuss all the options available and compare products from across the whole of the equity release market to find the best one for you. If they don’t think equity release is the right fit, or if they’ve found a more suitable option, they’ll give you all the information and help you’ll need to make a confident decision.
Your initial consultation with Key Partnerships is free with no obligation to proceed. If you decide to go ahead with an equity release plan, the advice fee of 1.99% of the amount released is payable on completion, subject to a minimum advice fee of £1,499.
Interest in learning more about equity release? Simply send us an enquiry or call us on 0344 346 3672 and a member of our team will discuss how we can help you.
Equity release is a type of lifetime mortgage which is a loan that’s secured against your home. Releasing equity will reduce the value of your estate and may affect your entitlement to means-tested benefits. You should always think carefully before taking out a loan against your property.
Key Partnerships is a trading name of Key Retirement Solutions Ltd, which is authorised and regulated by the Financial Conduct Authority. Registered in England No. 2457440.