Equity Release

Your home is a valuable asset to you and with no mortgage is something you may want to leave to your next of kin. However, occasionally you may need to access some of that money straight away. If you are 55 or over, equity release allows you take money immediately from the value of the property without you having to move out of the house or sell.

Equity release can be useful if you are facing unexpected expenses but can come at a high cost. Key Mortgages can talk you through the terms and benefits of equity release before you take this further to be a life commitment.

What are the benefits of equity release? #

The money you release will be tax-free and can be used for anything you deem important or unable to fulfil with savings alone.

This might include:

• Paying off your mortgage or debts
• Making retirement more comfortable
• Helping your family
• Home improvements
• Topping up your income

What are the different types of equity release?
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When talking over equity release with an expert they will go into detail on the options available, and how they will benefit and affect your home in the future.

Lifetime mortgage

Being the most popular option, this is only available to those aged 55 and over and different to a standard mortgage. You will borrow some of your value at a fixed interest rate, no payments need to be made until the house is sold or when you die. The interest will be added on at this point.

Home reversion

With this option you can sell part or all of your home to a home reversion provider in return for regular or a one off lump sum payment. From the age of 65 you will be able to live in your home rent free providing you can keep it maintained and insured.

What are the alternatives to equity release? #

Moving to a cheaper home and downsizing could mean you can live off the profit made from your previous home with fees considered. A cheaper and more comfortable home will be appreciated more as you age. Mortgages are also becoming widely available to older borrowers and is another option which is a lot less costly than equity release.