Providing a leg up onto the property ladder with equity release

Help your youngest family members realise their property ambitions by unlocking tax-free cash from your home.

It is no secret that many of the UK’s young people are struggling to make moves on the property ladder. High house costs, which show little sign of abating, are proving prohibitive, with the amount required for a deposit seeming a distant dream for many. In fact, recent research has highlighted that six million more people now live in short-term rented housing than 15 years ago, it is becoming clear that creative solutions are required for this particular property problem.[1]

However, if you’re an over-55 UK homeowner, then the solution could be a lot closer to home than you realise. A lifetime mortgage, the UK’s most popular equity release product, could allow you to unlock a portion of your property’s value as tax-free cash. Once used to clear any debt secured against your home, such as an existing repayment mortgage, the remainder of the money is yours to spend as you wish. That means you could provide the financial ‘leg-up’ your younger family members might need to get onto the property ladder.

Equity release has changed since the introduction of regulation in 2007 and now provides secure access to your property wealth. Using a lifetime mortgage, rather than a home reversion plan for example, ensures that you retain full ownership of your home, until both you and your partner either pass away or enter long term care. Choosing a lifetime mortgage from a lender approved by the Equity Release Council also provides a number of important safeguards for your peace of mind. One of these is the ‘No Negative Equity Guarantee’ that ensures you will never owe more than the value of your home, nor pass on any lifetime mortgage debt to your heirs.

Thanks to the growing popularity of equity release and increasing product diversity, there are a myriad of lifetime mortgage options to choose from. These include products that allow you to make voluntary, penalty-free repayments to reduce the overall costs, and mortgages that allow you to keep an interest-free reserve of equity to be drawn down when you require the capital in the future. All nevertheless provide you with an initial tax-free lump sum. It is important to note that releasing equity may reduce the value of your estate and could affect your entitlement to means-tested state benefits. Your adviser will provide you with a personalised illustration and can help you find the product that’s right for you.

Already this year we’ve helped our customer’s release an average of £79,863 from their homes, transforming their later life outlook for the better.[2] If you think that you and your family could benefit from a similar tax-free cash boost, why not use our free online calculator today to find out how much you could release?

 

Could equity release help you? Call us now and speak to one of our expert team who will give you all the information you need.

0800 652 2955


1 The Observer, ‘Give Britain’s youngest homebuyers state loans for deposits, urges report’, 29/07/18
2 Responsible Life data, August 2018
A Lifetime Mortgage may reduce the value of your estate and affect your entitlement to means tested state benefits. To understand the features and risks, ask for a personalised illustration. Responsible Equity Release is a trading style of Responsible Life Limited. Only if your case completes will Responsible Life Limited charge an advice fee, currently £1,295.

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    Responsible Equity Release is a trading style of Responsible Life Limited. Responsible Life Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register (http://www.fsa.gov.uk/register/home.do) under reference 610205.

    This is a Lifetime mortgage which may reduce the value of your estate and may affect your entitlement to state benefits. To understand the features and risks ask for a Personalised illustration.

    Any information contained herein is a personal opinion of the author and should not be considered to be advice of any kind. Inheritance Tax planning is not regulated by the FCA. Think carefully before securing other debts against your home. By consolidating your debts into a mortgage you may be required to pay more over the entire term than you would with your existing debt.

    Only if you choose to proceed and your case completes will Responsible Life Limited charge an advice fee, currently not exceeding £1,295. Our adviser will talk through the setting up costs of a lifetime mortgage before you make any decision to proceed.