OVER 55? HERE’S HOW EQUITY RELEASE COULD WORK FOR YOU
EVERY year thousands of people all across the country use equity release to help transform their finances. Here are the magnificent SEVEN key facts that help explain how the schemes can work.
It’s for those aged 55 and up
Equity release can be used by homeowners from 55 years old. You can use it whether you are working or retired. In a nutshell, it lets you release some of the money locked up in the bricks and mortar of your home. It is an alternative to downsizing if you need extra cash after 55.
You can stagger what you release
You can release a lump sum of cash from your home at the start. Or you can release a smaller amount and withdraw more money later. You could release up to half the value of your home, though the exact amount will depend on your personal circumstances, including your age and state of health.
Spend the money on what you like
The money is tax free and can be used for anything you choose. Lots of people use it for luxuries like holidays and cruises. Others upgrade their cars or do DIY at home, including new bathrooms, kitchens or windows. Some help the younger generation financially, and many use equity release as a way to escape the interest-only mortgage time bomb. The choice is yours.
No monthly payments
You don’t have to make monthly payments on the money you withdraw. The interest simply rolls up and the money you withdraw, plus the interest, is repaid when the plan comes to an end, after you or your surviving spouse dies or goes into long-term care*.
Security guaranteed
All the Equity Release council plans recommended by Key come with a guarantee that you can stay in your home as long as you want and can never owe more than the property is worth. Some plans even let you guarantee that a certain per cent of the property’s future value will always be available to be left to your beneficiaries as an inheritance, through what is called inheritance protection.
Flexibility
Some equity release plans are flexible. With a lifetime mortgage you still own your home and can move or downsize after taking one out (subject to lender’s criteria). No-obligation chats with Key can explain more.
Choose the right scheme for you
The equity release market is growing, with new providers competing hard to offer the best deals. Key has written a free guide to Equity Release which can answer most questions people have about plans and how they work. Call now for a FREE GUIDE to Equity Release: 0808 252 9091.