Equity Release

Equity release

Equity release today

Equity release mortgages allow extra flexibility for the mature borrower to arrange lending against their home to release equity or to replace existing lending and reduce outgoings.

Every year £1 billion is lent to borrowers over 50 on these types of schemes.

There are six main reasons for homeowners to take equity release lending.

  • To clear an outstanding mortgage
  • Home or garden improvements
  • To pay for a holiday
  • To pay off loans and credit cards
  • To assist family financially
  • To increase funds for regular monthly bills

Clearing an outstanding mortgage

Increasingly borrowers approaching standard retirement age are finding their re-mortgage options limited with traditional lenders.

Perhaps you have an endowment that has not met its intended cash value and there is a shortfall.

Perhaps you have an interest only mortgages coming to the end of its term and your current lender is offering you no practical options.

Perhaps you would like to extend your mortgage into retirement and your lender will not allow it.
These are all circumstances where the equity release mortgage can be a practical solution.

Home improvements

You may have owned your home for many years and would now like to arrange some improvements to the interior, exterior, or the garden. Perhaps you need some alterations to better suit your needs.
Often it is not realistic to fund these improvements from savings and once again the equity release mortgage can help.

Go on holiday

If you would like that one special trip or holiday, the equity release mortgage could be the solution.
This is your opportunity to make the trip you have always promised yourself. Your chance to visit family and friends overseas.

Clear loans and credit cards

Making regular monthly payments on personal loans and credit cards can be crippling on retirement income. Equity release allows you to clear your debt and substantially reduce your outgoings in a few short weeks.

Family and friends

Do you have a son, daughter, or grandchild that needs a deposit for their first home, funds to start a business, or funds to complete their education? The equity release mortgage allows you to supply them with the cash they need today without affecting your own lifestyle.

Regular bills

Are you finding that your regular monthly income is a little slim to cover your on-going and rising costs of living? If so, an equity release arrangement allows you to use the value of your property to boost your monthly cash-flow.

How much can I raise?

The amount you can raise depends on the value of your property and your age.
For example at age 60 you can typically raise 25% of the value of your property, the older you are the more you can raise:-

  • 30% at age 65
  • 36% at age 70
  • 41% at age 75
  • 47% at age 80

If you already have lending on your property this will reduce the amount you can borrow.

Should you have a reduced life expectancy you may be able to borrow a higher figure.

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