What Can Equity Release Be Used For?
Paying off Existing Loans and Debts e.g An Existing Interest Only Mortgage
One of the most popular uses of equity release is to pay off an existing Interest Only mortgage at the end of its term. With the ability to pay the interest on a monthly basis or allow it to roll up, modern equity release has many extremely flexible aspects.
Home Improvements or Adaptations.
You may feel that your home needs a new kitchen or bathroom which releasing funds can help pay for. Some of our clients use Equity Release to raise funds for adaptations to the property for mobility reasons.
Additional Retirement Income
If your pension is not proving to be enough to fund your lifestyle, you may have the option to raise cash from your property to supplement this. Equity Release is not credit scored or affordability checked.
Later Life Care at Home
You may choose to stay in your home for longer and pay for later life care to visit you in your home.
Helping Family Financially During Your Lifetime by Making Gifts
This use of funds is becoming increasingly popular. Especially for Parents and Grandparents helping their families to maybe purchase their first home or pay off debts. The gift can also help to reduce potential inheritance tax issues. Remember the gift remains a gift with reservation until seven years have passed. After seven years the gift would be outside the estate.
We will always advise that you have a lasting power of attorney in place if you take out an equity release mortgage to ensure your loved ones can manage the mortgage account or even draw down needed additional funds. Learn more about Lasting Power of Attorney
Download a FREE guide to equity release
If you would like more information on Equity Release and how it could benefit you, we will pass your details to one of our preferred financial services partners who are qualified and regulated to give fully advised and recommended advice.