Equity Release (Lifetime Mortgages)
It is estimated that retired people in the UK are sitting on 400 billion pounds of equity that is tied up in their main residences and that this area of the population is becoming increasingly “asset rich” but “cash poor”. Equity release mortgages enable the over 55’s to have access to this increasing equity in their properties in order to balance their financial situation better and make use of the cash for a number of different purposes.
(If you are not over 55 years old but wish to release money from your house as a loan or re-mortgage in the normal way then please visit our standard mortgage and re-mortgage pages HERE).
Why would I want to release some of the equity in my property?
Equity release provides a lump sum that can then be used for a variety of different purposes;
A) to give increased spending power for things such as holidays, home improvements, new car, holiday homes, gifts to children, medical fees, investments etc ….
B)
to provide extra income,
C)
to protect assets from taxation.
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For a personalised illustration and one to one advice please complete our CALL BACK FORM so that an independent mortgage advisor can contact you to discuss your options further.
Contact us to find out how to….
Increase your spending power – Equity release can be used to purchase luxury items that otherwise would not be affordable (holidays, holiday homes, new cars…) or for essentials that are expensive and a burden on daily finances (medical costs, home improvements…) or even for wise investments that will allow an increased income whilst reducing tax liability (see below for more information on inheritance tax or speak to one of our advisors).
Have access to an extra income – For many the incentive is enhancing their lifestyle by using some of their equity to provide additional income. This can either be done by using one of the specialist schemes that provides an income for life, or alternatively by investing a lump sum to provide income. This latter option can also have the added advantage of protecting assets from inheritance tax (see below for more information on inheritance tax or speak to one of our advisors).
Protect your assets – Because of the huge rises in property values over the past few years, many people now fall into the inheritance tax trap (applies to assets over £275,000) that would previously have considered it a tax on the wealthy. It is possible to use equity release to mitigate or eliminate this liability and at the same time produce additional income to enhance ones lifestyle.
In order to receive a call back from an independent mortgage advisor who is fully qualified in this type of mortgage product, please complete our simple CALL BACK FORM.
For more information on how equity release (lifetime mortgages) work please click here.
Equity release (lifetime mortgage) products involve borrowing against part of your home. Interest is added to the amount you owe (as you do not need to repay the capital nor the interest like standard mortgages) and this will reduce the remaining equity in your home. If you live a long time or house prices fall, there may be no equity left for your heirs to inherit. Equity release schemes may work out more expensive in the long term than downsizing to a smaller property however for those who do not want to leave their home or have the hassle of moving house again it is a great alternative. Releasing equity from your home may also affect your entitlement to state benefits and grants.
Due to all of these points that should be considered before applying for an equity release (lifetime mortgage) we strongly advise you to speak to one of our panel of independent mortgage advisors for more detailed, personalised advice. They will be able to advise you of any negative aspects of equity release mortgages that you should be aware of given your situation and will make sure with you that this is the most suitable method of raising the funds your need.
In order to receive a call back from an independent mortgage advisor who is fully qualified in this type of mortgage product, please complete our simple CALL BACK FORM.
Please think carefully before securing any debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or other loan secured on it.
For all mortgages and loans please be sure that you can afford the repayments before entering into any credit agreement. The figures and information quoted on this site are believed to be correct at the time of issue and are subject to change without notice. Any quotation supplied is NOT an offer of a mortgage.
In accordance with the Data Protection Act 1998 all personal data handled by Assetz Finance will be processed fairly, lawfully and in the best interests of our client. The information and personal details provided may be disclosed to companies who have an agreed partnership with Assetz Finance and who will be able to offer you financial and property services that you require. These companies may be located in your country of purchase or the UK.
Please be aware that it is a criminal offence to give misleading or incorrect information in connection with a loan application. Specific actions may be taken to prevent fraud.
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