Downsizing your house is a popular way to take advantage of the equity that has built up in your home. However, if you’ve gained an attachment to your beloved home and don’t want to move out, releasing equity is another option for you to consider.
Downsizing your home means selling your home and buying a cheaper property. This may happen by buying a smaller property or purchasing in a lower priced area. Once you have sold your property, you keep the money left over.
Equity release means releasing tax-free cash from the equity that has built up in your home. There are two different types of equity release: a Lifetime Mortgage and a home reversion plan. A Lifetime Mortgage is the UK’s most popular form of equity release, as your home remains 100% yours.
If you’re considering downsizing to fund your retirement, pay off debt or provide an inheritance, it’s important to consider your options carefully.
Equity release has benefits over downsizing that could make a large difference to your retirement future. Maintaining 100% homeownership with a Lifetime Mortgage, means you can remain in the comfort of the home you have grown to love and filled with family memories. The current growth in the housing market could mean that you benefit from an increase in your home's value over time, helping to offset the impact of interest build-up. This along with flexible features like voluntary payments, make releasing equity a cost-effective way to borrow. It’s also important to know that a Lifetime Mortgage will reduce the value of your estate and may affect your entitlement to means-tested benefits.
Responsible Equity Release can provide you with professional advice on equity release, including Lifetime Mortgages. See if you are eligible or learn about more about the pros and cons of choosing this option instead.
Use the free calculator on this page to see how much equity you could release from your home.
Alternatively, for some more information or to book a no-obligation appointment with one of our fully qualified advisers, get in touch with our UK based Information Team today on 0800 048 5384.
Responsible Equity Release will only ever use lenders that are members of the Equity Release Council, meaning that you will always enjoy the safeguards guaranteed by them.
To find out more about Lifetime Mortgages, and the various features available, why not book a no-obligation appointment with one of our fully qualified advisers? The Information Team can help with this on 0800 048 5384.