Equity Release

Find out if releasing tax-free cash from your home is right for you.

Find out if releasing tax-free cash is right for you

With significant national uncertainty caused by coronavirus, coupled with low interest rates, more and more people are looking at releasing some of the equity that they have tied up in their homes. Specialist equity release advisors have seen an increase in calls from people who are concerned that they may not be able to maintain mortgage payments, and some want to help out family or friends during these uncertain times.

Some UK mortgage lenders have offered short-term mortgage holidays to those impacted by coronavirus, which will help many but not all.

Clear your existing mortgage, meaning no monthly repayments

One product that can help homeowners aged 55 and over release some tax-free cash from their home is a lifetime mortgage. This works similarly to a regular mortgage but you don’t have to make monthly repayments and you use some of the tax-free cash that you release to clear your existing mortgage.

With this option you still retain 100 per cent ownership of your home and you have the added peace of mind that your home cannot be repossessed as a result of missing monthly repayments. The money you borrow, plus accrued interest, is only repayable when you die or move into long-term care.

Who can qualify?

You don’t have to have an existing mortgage to qualify for a lifetime mortgage. As long as you’re aged 55 or over and own a home worth £70,000 or above, you can apply to release a lump sum of tax-free money. What’s more, with lifetime mortgage rates currently at low levels, now could be a good time to find out if it’s a suitable solution for you, as these current low rates can be fixed for life.

A specialist equity release advisor will be able to explain everything that you need to know about your options, such as how equity release will affect the amount of inheritance you can leave and it may also affect your entitlement to means-tested benefits both now and in the future.

Plans from the whole of the market will be considered, the features mentioned and the amounts raised, are subject to the lender’s criteria, terms and conditions. These may take into account age, health and lifestyle factors in order to provide you with an enhanced amount.

Why choose equity release?

The Daily Mail Equity Release Service compares the whole of the market to get you the best plan for your circumstances from across a range of lenders

Low interest rates from just 2.62 per cent fixed for the rest of your life

No monthly mortgage payments are required, but you can still pay off your interest if you wish, it is entirely your choice

Your home can’t be repossessed for not making monthly repayments

You can take a small initial lump sum (payments are tax free) and have further money left over for emergencies if you need it

Just like a regular mortgage you continue to own 100 per cent of your own home.