Is now the time to consider equity release?

Increasing numbers of people aged 55 and over are considering equity release as a way to help boost their retirement plans, so we’ve put together a simple step-by-step guide with some of our top tips on equity release to help you make your decision.

The Equity Release Council (ERC) reported that there has been a 14 per cent growth in the number of loans agreed over the past three years, with half of all products now offering rates of less than 4 per cent. With more choice than ever before and low rates available, now could be a good time to look into releasing money from your home.

1. Understand your needs

Have an understanding of what you would like the money for. This means you won’t borrow more than you need to. You could release from £10,000, up to 55 per cent of the property value, depending on the age of the youngest homeowner and value of your property. Once any outstanding mortgage has been repaid, the money that you release is yours to spend as you wish.

2. Contact a specialist

It’s important that you speak to a specialist equity release advisor to give you advice. Some advisors are tied to particular products, but through The Mail Finance Equity Release Service you will have access to advice from the whole of the market. We have access to exclusive plans that are not available to other advisors.

3. Make an informed decision

Your advisor will help you understand all of your options, including alternative methods for accessing the money, such as downsizing or taking a standard mortgage. They will tell you everything you need to know about equity release, including the effect on the amount of inheritance you may leave and if your entitlement to means-tested benefits could be affected now or in the future.

4. Get a personalised quotation

Your advisor can provide you with a personalised illustration for your borrowing n ng needs, which outlines the features and risks involved. Through our service, the quotation is free and you are under no obligation to proceed. Only if you then choose to proceed and your case completes would a typical fee of £1,795 be payable.

Equity release may involve a home reversion or a lifetime mortgage, which is secured against your property.

Equity release requires paying off any existing mortgage. Any money released, plus accrued interest, would be repaid upon death or moving into long-term g care.