How does equity release work?
Reader’s Digest Equity Release offers homeowners over the age of 55 trustworthy advice when it comes to the different ways that you could access some of your property wealth. One of the solutions an adviser can help you to consider is a Lifetime Mortgage, the UK’s most popular equity release tool. With this, you can borrow a tax-free cash sum from your home’s value.
There is no need to move out and no requirement to make any payments during your lifetime with this product, but you have the option to make them. Interest is charged on your loan at a rate that is fixed for life. Interest will then roll up over time, so making payments on either a regular or flexible basis can help to limit the cost of borrowing over time.
The amount borrowed, plus any interest not paid during your lifetime, is only due for full repayment once the last homeowner has either passed away or entered long-term care. Usually this will be achieved through the sale of your property.