Deciding if equity release is right for you
If you’re aged 55 years or older, and a UK homeowner with a property worth at least £70,000, you could release equity. But whether or not it’s right for you will depend largely on your personal circumstances. If you agree with the statements below, then it could be an option worth exploring.
You don’t want to make monthly repayments
Releasing equity lets you access your cash tax-free in one lump sum, or in smaller instalments. Generally, you do not have to pay monthly repayments on your loan. With a lifetime mortgage, there are typically no monthly repayments to make. This is because the loan, plus compound interest, is repaid when the plan comes to an end.
You want to stay in your own home
One of the main advantages of releasing equity is the right to stay in your own home. For lifetime mortgages your home will only be sold when you pass away or go into long term care.
You understand it will reduce the inheritance you leave behind
Equity release is designed to help you and your loved ones enjoy your money during your lifetime. The equity you release, along with any compounded interest, is paid back from the sale of your home, so there will be less money available for inheritance.
You want the freedom to spend your money however you like
Once you receive your cash, you’re free to spend the money how you wish. The only exception is if you have a balance left on your mortgage, in which case you’ll need to use some of the cash to pay it off first.
The money can be used for all sorts of things, including home and garden improvements, paying off debts, early inheritance for your family. You should always think carefully before securing a loan against your property.
Remember, equity release isn’t right for everyone, so it’s important to get expert advice before you go ahead.
Call 0800 622 6414 to speak to Giraffe Equity Release for free, or try our eligibility equity release calculator
