Equity release allows homeowners in later life to access the value of their property without the need to sell. The most popular product is the ‘Lifetime Mortgage’. This allows a homeowner to borrow a lump sum against their home’s value at a fixed interest rate. A distinguishing feature of equity release is that the loan and the accrued interest are paid back from the value of the property on your death, or when you no longer need to live in your home because you have moved into long-term care. So, you can borrow the money without needing to meet monthly repayments.
Equity release may be used in many situations: to fund retirement; clear an outstanding mortgage; or to help children with a deposit on a property. There are many others.
The equity release market is an evolving sector, with a growing choice and flexibility. For example, a ‘no-negative-equity guarantee’ means that the amount owed can never exceed the value of your home.
The Equity Release Council sets standards and safeguards for the provision of advice and products. It reports that since 1991, over 480,000 homeowners have accessed over £28bn of housing wealth via Council members to support their finances.
A vital part of the process is having trusted financial and legal advice. At Browns we are proud to be members of the Equity Release Council.
Please contact Jane Elgar if you would like more details.