Equity release

Could equity release help you finance your future travels?

After months of lockdown at home due to the coronavirus pandemic, many of us have been looking at the same four walls and imagining a scenic beach and a golden tan instead. During this time 85 per cent of Brits threw themselves into home improvements 1 , and it's clear that many have now started to look to the future and plan their dream holiday for next year.

Research by Age Partnership found that the number of people releasing equity from their homes for holidays had remained strong, only dipping by 0.8 per cent in the second quarter of the year. By releasing money from their homes, customers can repay their existing mortgage and free up money to spend on holidays and other luxuries.

Why release equity?

If you’re a homeowner aged 55 or over, equity release allows you to clear any existing mortgage so that you no longer have the burden of making monthly repayments.

Once you’ve repaid your mortgage, any additional money you release can be spent as you wish, such as planning for the future after months of lockdown. You don’t have to take all of the money at once either, with certain plans you can access the funds at a later date if needed.

What's involved?

Equity release may involve a home reversion plan or lifetime mortgage which is secured against your property. To understand the features and risks, ask for a personalised illustration.

Equity release does not require you to make monthly repayments. Any money released, plus accrued interest, would be repaid upon death or moving into long-term care.

The right advice for your situation

Mail Finance work with award-winning broker*, Age Partnership, who can provide you with a free, no-obligation quotation. Their specialist advisors will explain everything that you need to know about your options, such as how equity release may affect your entitlement to means-tested benefits both now and in the future.

It's important to remember that equity release is not the right solution for everyone and other options should be considered before proceeding, which is why we try to understand your circumstances first.

Only if you choose to proceed and your case completes would a typical fee of 2.25 per cent of the amount released be payable (minimum £1,695).