If you feel you may benefit from some extra funds during your retirement, then there are a few things you need to know about how to release equity from your home. Dependant on the plan you opt for, interest rates can vary. If, for instance, you would like to borrow the maximum amount available to you the interest rate you are offered may be slightly higher than if you were to take the money steadily in a drawdown facility.
Also, as you get older plans are available from more lenders and more money is available as a percentage of your property value. There are many questions that you may have about equity release so a good first step as to how to release equity would be to read our Equity Release FAQ.
Then, a wise move would be to order one of our free, posted, full colour guides to equity release. This answers more questions than the FAQ does and, more importantly, can be read at your leisure and shared with others involved in the decision making process.
Once you have learned more on equity release, and if you decide that equity release is the right move for you, an Independent Financial Adviser can walk you through a personalised illustration, explaining the financial details in a lot more depth, giving you equity release quotes and Responsible advice.
The next step would be to have your house valued and to select a solicitor of your choice to handle the paperwork. Once all parties are happy with the paperwork, the plan can then complete and the payment due to you will be made. You will then either enjoy your lump sumor your regular drawdown payments without having to make any repayments.
By the way, we wouldn’t be The Responsible if we didn’t recommend advisers who only charge you for their advice if you go ahead with the plan!