Equity release myth buster FREE

You may have heard of equity release but you’re not sure what it is and if it’s right for you. Our equity release myth buster gives you an overview of what’s

involved.

Rates are some of the lowest

on record

The number of equity release products available has grown year-on-year, which means more choice for you.

Along with the product growth, interest rates have also dropped. A lower rate means a lower cost of borrowing. Of course the actual rate that you can secure will depend on

your individual circumstances.

Access the money as and when you need it

The most popular type of equity release is called a lifetime mortgage. With this type of product you have the option to take the money all at once or as and when you need it, this is called drawdown.

The benefit of a drawdown is that you're not charged interest for the money that you don’t need right away.

Protect your inheritance

One of the concerns people may have when considering equity release is how it will affect the inheritance they are able to leave behind when they pass on.

You can actually protect a portion of the equity in your property, this is known as an ‘inheritance protection guarantee’. An advisor, such as Age Partnership, will tell you everything you need to know about how equity release will affect the amount of inheritance you can leave and if your entitlement to means-tested benefits could be affected now or in the future.

No negative equity guarantee

Most equity release plans now carry a no negative equity guarantee. This means that neither you nor your estate will be liable to pay any more than the property is worth when it’s sold.

Spend as you wish

Don’t forget that once you’ve repaid any standard mortgage, the money that you release can be spent as you wish. Equity release may involve a home reversion plan, or a lifetime mortgage which is secured against your property. There are no monthly repayments required as the money released, plus accrued interest, is repaid upon death or moving into long-term care. To understand the features and risks, ask for a personalised illustration.

The UK’s largest equity release advisor*, Age Partnership, has produced a FREE guide to equity release