The value of equity released in the UK last quarter hit record highs – could it help you in your retirement too?
Equity release continues to grow in popularity across the UK, with increasing numbers of over-55 UK homeowners turning to the wealth in their property as a means of providing a significant financial boost. The Equity Release Council have reported a 44pc annual increase in Q3 – amounting to £824 million in cash released – giving some indication of the staggering property wealth available in the UK1.
If you are in the midst of planning your dream retirement, or you are simply searching for a convenient, secure way of boosting your later life income, then equity release with a lifetime mortgage could be the financial tool you need to reach your goals. With an array of products on the market, there’s sure to be a plan that meets your requirements and matches your ambitions.
A Roll-Up Lifetime Mortgage could provide you with access to a significant tax-free cash lump sum which could help you pay off the capital on your existing interest-only mortgage. Featuring no required monthly repayments, you simply pay back the loan, plus accrued interest, through the sale of your property after both you and your partner pass away, or you both enter long-term care. You retain full ownership of your property for the duration of your plan, meaning that you could significantly boost your income without the need to downsize. What could you make of your golden years with a significant tax-free increase to your income?
What’s more, the popularity of equity release is being driven by a wholesale commitment to customer satisfaction. That’s why as well as guaranteeing you remain the sole owner of your property, plans from an Equity Release Council approved provider all feature a no negative equity guarantee: you will never owe more than the value of your home. Subject to the provider’s criteria being fulfilled, most plans are also portable, meaning that you are free to move home in the future should you wish. A Lifetime Mortgage may reduce the value of your estate and affect your entitlement to means-tested state benefits, but a personalised illustration is available to help you understand the features and risks of any plans you may consider.
With over 80 types of plan available, there’s an equity release service to meet your requirements and match your ambitions, so there really is no need to tighten your belt in retirement.
Why not find out today how releasing equity could expand your budget and broaden the horizons of your retirement?