Could unlocking tax-free cash be right for you in 2023?

At the start of the year many people like to get their finances in order so they can make plans for the year ahead.

Homeowners aged 55 or over, who are looking for some additional money, have the option of unlocking tax-free cash from their home on a fixed rate of interest and choosing whether to make repayments.

Make your retirement more comfortable

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. The most popular form of equity release, a lifetime mortgage, also allows you to continue to own 100 per cent 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, meaning you need to be at least 55 years old to consider equity release and your property must be worth at least £70,000.

Boost your retirement income and live the life you deserve

According to equity release broker Age Partnership, in 2022 more than 31 per cent* of their customers used equity release to pay off their standard mortgage. This frees up money that would have otherwise gone on monthly repayments, to give them the retirement they deserve. However, it’s important to note that equity release could affect potential inheritance and any entitlement to means-tested benefits – both now or in the future.