Equity Release

Equity release allows you to unlock money from your home without having to move house, giving you the freedom to use your capital in a way that supports your lifestyle, retirement or helps your family. It can be a helpful option to give your finances a boost, but it’s not the right fit for everyone as there are pros and cons to equity release.

In simple terms it is a lifetime mortgage secured on your property… and while you can ringfence some of the property value as inheritance for your family, the loan amount needs to be paid back, including any interest, when you die or move into long term care.

Equity release is not appropriate for all of our clients but our experts can help you consider the risks and advise you if it is a suitable option for you and your family.

A lifetime mortgage is not suitable for everyone and may affect your entitlement to means tested benefits, so it is important to seek financial advice before taking any action. If you are considering releasing equity from your home, you should consider all options available before equity release.

The interest that may be accrued over the long term with a Lifetime Mortgage, may mean it is not the cheapest solution. As interest is charged on both the original loan and the interest that has been added, the amount you owe will increase over time, reducing the equity left in your home and the value of any inheritance, potentially to nothing.

Although the final decision is yours, you are encouraged to discuss your plans with your family and beneficiaries, as a Lifetime mortgage could have an impact on any potential inheritance. We would also encourage you to invite them to join any meetings with your Financial Adviser so they can ask questions and join in the decision, as we believe it is better to discuss your decision with them before you go ahead.

A lifetime mortgage is not suitable for everyone, and it is important to seek financial advice before taking any action. All other options available should be explored before choosing equity release. Interest is charged on both the original loan and the interest that has been added, the amount you owe will increase over time, reducing the equity left in your home potentially to nothing. Please discuss with your family and beneficiaries.