Equity release is a way to gain access to the equity that has built up in your property, without having to sell. For many years, this was not possible, and the only way to receive your equity was to sell the property, and after the mortgage was paid off, you were left with your equity. Equity release gives the homeowner an unprecedented level of flexibility, and it offers the chance to use the equity that has built up over the years.
Lifetime mortgage
Equity release lenders can give homeowners aged 55 or over, the ability to release their equity without moving or downsizing, and this allows you the flexibility that a traditional mortgage lacks. The equity release plan would be tailored to meet the client’s individual requirements, and with experts like responsibleequityrelease.co.uk, you can be sure that the plan is right for you.
No more monthly repayments
The great thing about equity release is that there are no monthly repayments, as the loan is settled when the owner passes away, or the property is sold. The plan is designed to provide the homeowner with a steady and secure income throughout retirement, so there are no repayments during the life of the equity release plan.
Relieve the financial pressure
It can be quite stressful having to budget around the mortgage repayments, and is a welcome relief when you no longer have to find that figure, which is usually a large portion of our income. That extra money could be used to buy a new car, or take a holiday whenever you fancy, so it makes sense to start to use the equity you have accrued over the years. Equity release schemes are designed to meet the needs of people that have equity, and wish to use it, without having to sell the home.
Protect inheritance
It is possible to protect a percentage of your equity, which remains until the plan finishes, and this can be a guaranteed inheritance. It is important to consider the future of family members, and equity release allows you to allocate as much or as little as you wish to be protected. The equity you wish to be released will not in any way affect the percentage you have put aside to be protected, it just means you can only realise a part of your equity, as the remainder has been set aside for family members.
Flexibility
Equity release allows the homeowner to realise their equity, and with no monthly repayments, it gives you the ability to do many things. You may wish to clear some debts, or perhaps take your partner on that cruise you’ve always wanted, whatever your reasons, equity release gives you the flexibility that a standard mortgage cannot.
For many, the ability to realise equity without selling their home brings a new dimension into their lives, and this is why equity release has become very popular in the past few years. Flexible plans allow for inheritance, and your equity can be received as a tax-free lump sum, or paid at regular intervals, whichever you prefer.
