Home is where the opportunity is
If you need to access funds for something important in life, the money you need could lie in your home. At Allisons, we can show you how to unlock it.
We do this through something called equity release. It’s where you turn the value of your property into cash. Whether it’s for home improvements or a more comfortable retirement, it’s a fast way to access an income or cash lump sum.
As the name suggests, you simply release some of the equity you’ve built up in your home. This equity is your property’s value, minus any outstanding mortgage or loans secured against it. In many cases, the equity you’ve built up over the years gets passed on as inheritance. But thanks to equity release, you can choose to access some of your home’s value tax-free.
Do I qualify for an equity release?
It’s worth knowing that equity release is only an option if you’re 55 or over. If you are, then you can take the money you release in a handy lump sum. You can also take it through smaller amounts over time, known as drawdown. Or, you can do a combination of both, perhaps with an initial lump sum, followed by smaller payments later.
Whichever you choose, an equity release plan gives you the extra money or income you need, without you having to sell or move out of your home.
Do I need to get advice?
If you’re thinking about equity release, there are lots of factors to bear in mind. So much so, that it’s an FCA requirement that you get regulated advice before you can take one out. It’s all about making sure you’re fully informed and making the right choice for your circumstances.
Whether equity release is right for you or not, we’re here to guide you through all the ins and outs of your decision. We’re happy to explain it in more detail. And if you think it’s right for you, we can then help you put your plans into motion.
Lifetime Mortgages
This is the most popular way to release equity in your home. It’s where you borrow some of your property’s value at a fixed or capped interest rate. As we touched on earlier, you then take the money all at once in a lump sum. Or, you take it in smaller chunks as and when you need it. If you choose the second, option, you’ll only pay interest on the cash you’ve actually taken, and not on the money you’re still yet to draw down. Yet however you take out the money, if you don’t make any repayments, you’ll find the interest compounds rapidly. After all, the amount you owe is increasing all the time.
Fortunately, most lifetime mortgages let you make repayments, either of the capital you’ve withdrawn or just the interest itself. Meaning you can work on reducing the overall cost, no matter how much you choose to repay. If you want to overpay, on the other hand, you’ll find this is normally capped at 10% of the loan value each year.
Impartial advice for life’s big decisions
Equity release is one of the biggest decisions you’ll make in later life. That’s why we’ll listen closely to you. Clearly explain all the products available. And make sure you fully understand all the implications before offering our advice. If you’d like to raise some funds for the next step on life’s journey, why not talk to us today?
A LIFETIME MORTGAGE IS SECURED AGAINST YOUR HOME. TO UNDERSTAND THE FEATURES AND RISKS, ASK FOR A PERSONALISED ILLUSTRATION.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
EQUITY RELEASE WILL REDUCE THE VALUE OF YOUR ESTATE AND MAY AFFECT YOUR ENTITLEMENT TO MEANS TESTED BENEFITS.