In this article
Equity release works by allowing homeowners, aged 55 or over, to release tax-free money from their homes.
With most equity release plans, you’ll maintain full ownership of the property and you can choose whether to make monthly payments, like a regular mortgage, or not.
You can choose to take the money as a lump sum or in smaller chunks as and when required.
Equity Release
Explained in 2 mins 58 seconds
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Is Equity Release right for me?
Here at UK Moneyman, we are one of a limited number of mortgage advisors in the UK that can consider the full range of later life mortgage products.
The full range, in order of consideration, is a regular mortgage which, in some cases, can run until age 85, the wide collection of more specialist retirement interest only mortgage products (RIOs) and lifetime mortgages, including equity release plans.
Our specialist later life team will recommend the most appropriate product or combination of products for your personal situation. It’s important to remember that equity release is not the only answer, and another option may suit your circumstances and needs better.
You are only able to release equity, via an equity release plan, from your main residence, not a second home or buy to let property. Regular mortgage options maybe more suitable in these situations
The Application Process
If you feel ready to take the next step with us, we’d love to hear from you. You can telephone or book online to arrange a free, no-obligation consultation where we can discuss your equity release options.
We’ll answer all your questions and recommend a way forward. We don’t need anything in the call other than your ages and your address.
Evening calls are available to fit around any work or family commitments also.
Do I have to make monthly payments with equity release?
Yes, but you can choose how that interest is handled. Some lifetime mortgages let you avoid monthly payments entirely, with interest rolling up over time.
Others allow you to pay the interest monthly, just like a standard mortgage, or to pay a smaller fixed amount to keep the interest as low as possible.
You only pay interest on the amount you actually release. So if your total facility is £100,000 but you only take £10,000 in the first year, interest is charged just on that £10,000. Nothing else accrues until you draw more funds later.
It’s worth speaking to an experienced age 50+ mortgage advisor, like the team at UK Moneyman, who can explain the different options and help you find the one that suits your needs.
