Equity release refers to a financial product that allows homeowners over the age of 55, to access some of the value (equity) tied up in their property without the need to sell it or move out.
Equity release can provide a source of income or a lump sum for homeowners to use in retirement, to fund home improvements, cover healthcare costs, or supplement their income.
Equity Release will reduce the value of your estate and can affect your eligibility for means tested benefits.
Interest Accumulation: With lifetime mortgages, the interest accrued can significantly reduce the inheritance left for beneficiaries and impact the overall equity in the property.
Impact on Benefits: Releasing equity could affect eligibility for means-tested benefits or other financial support.
Complexity and Costs: Equity release products often involve fees, interest rates, and legal expenses. It's crucial to understand all associated costs before committing to an equity release scheme.