Could £85,000 help you in retirement?
I ncreasingly retirees are looking at their homes in a new light as a way to boost their finances. According to Key Retirement, in 2017 their customers had on average £85,810 available to release. A lifetime mortgage, the most popular type of equity release plan, allows homeowners aged between 55 and 95 to access a tax-free cash lump sum without having to move house and downsize. There are typically no monthly repayments to make as the loan, plus roll up interest, is repaid when the plan comes to an end.
How can I spend my money?
You can spend your money however you like, although any existing mortgage would need to be repaid first. Equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits. Remember a lifetime mortgage is secured against your home.