Could releasing tax-free cash from your home be right for you?

To put it simply, equity release is a way to unlock some of the cash (equity) in your property while still living in your home. The money that you release is tax-free and you can opt not to make monthly repayments, which can free up more disposable income on top of the tax-free lump-sum of cash. The most popular form of equity release, a lifetime mortgage, also allows you continue to own 100% of your home. The amount of money that you can access is determined by the age of the youngest homeowner and the value of your property. You must be at least 55 years old to consider equity release and your property must be worth £70,000 or more. Make your retirement more comfortable As this financial solution is specifically for those aged 55 or over, equity release is often used to plug a gap for people who might have a shortfall in their pension savings as they approach or are already enjoying their retirement. For most of us, our homes are our most valuable asset, and if you’ve owned it for a number of years, it’s likely to have increased in value and could mean you are sitting on a chunk of equity. Boost your retirement income and live the life you deserve According to figures from the UK’s largest equity release broker, Age Partnership,* more than 31% of their clients use equity release to pay off their standard mortgage, freeing up money that would have otherwise gone on monthly repayments, to give them the retirement they deserve. It’s worth noting that equity release could effect potential inheritance and any entitlement to means-tested benefits – both now or in the future. * Source: Touchstone data, number of equity release plans Jan 2018 – March 2019.