Equity Release FAQ…
At Responsible, we understand you may have lots of questions about the equity release process. In this FAQ we attempt to predict what they are and give you a solid answer.
How old do I have to be to take out equity release?
With an equity release plan, you have to be aged 55 years or more. For certain types of home reversion plan you may have to be 65 and over. If you are one half of a couple, it is the age of the youngest half that counts towards this requirement.
Can I have a mortgage and an equity release at the same time?
With an equity release plan, you can’t have a mortgage or any other loan secured on the property at the same time. Many people take out an equity release plan in order to clear any existing mortgage from their property – and with it the stress that comes with having to make those monthly mortgage payments.
Do I have to make monthly repayments if I take out equity release?
No, quite the opposite. Unlike a traditional mortgage, an equity release plan is designed to offer you a secure and steady income throughout retirement. You do not have to make any monthly repayments for the lifetime of the equity release plan. The plan does not have to be repaid until the house is sold when the last person on the plan passes on or moves out of the home and into long-term care.