Can releasing equity help you take control of your financial future?
Money worries can come at any time in life, but for those who have already retired, finding YOU ARE SHORT OF cash can be particularly stressful. That’s why an INCREASING NUMBER OF British homeowners are CHOOSING TO RELEASE SOME equity from their homes.
Analysis from Key Equity Release reveals that in the third quarter of 2020, 47 per cent of the funds released from homes went towards clearing debts, while a quarter was used to support family and friends via gifting. Another popular use for the money released is to make home improvements, including modifications to allow people to stay in their homes for longer.
Equity release has evolved a lot recently, and now offers customers, who want control and flexibility, a choice about how they access their property’s wealth. The most popular type of equity release now is a lifetime mortgage – a loan secured against your home. It allows homeowners aged 55 and above the ability to access some of the value locked up in their homes.
Typically, with a lifetime mortgage, the interest charged is added to the loan balance each month, meaning there’s no need to make monthly payments as the loan plus roll up interest is usually repaid when the plan comes to an end.
Some plans allow you to make voluntary ad hoc repayments each year, up to 12 per cent of the initial amount you borrowed to keep the amount owed down, if you choose. All of Key’s lifetime mortgages come with a ‘no negative equity guarantee’, which means you’ll never owe more than your home is worth.
Choosing a drawdown option, for example, means you control how much cash you release and when, without paying interest on money not withdrawn. Just knowing you have access to money if or when you need it gives you complete peace of mind.
Finding out how much you could access and what your options are is easy and free when you use Key’s expert guide and calculator. And if you want to talk to someone, that’s free, too, and there’s no commitment to go ahead.
ORDER YOUR EXPERT GUIDE TO EQUITY RELEASE BY CALLING 0800 188 4815.