Facing retirement with all your wealth tied up in your home?

Retirement is when you expect to have the time to do whatever you want to – and the money to do it with. But the reality of retirement today is often quite different.

Many people find themselves reaching retirement or they are in retirement ‘asset rich, cash poor’ – this means that they are wealthy on paper but not when it comes to the bank balance.

Equity release is about making your property wealth available to you in cash, without having to move.

There are many reasons for wanting to release money, you may wish to top up your retirement income, make home improvements, help the children, pay for at home care or simply take a long holiday.

There are both advantages and disadvantages to taking out equity release. Some of the advantages are you will have tax-free cash to spend, you will never owe more than your home is worth, you can stay in your home, you don’t have to make monthly payments and you still own your home. Some of the disadvantages are that your debt will increase due to interest being rolled up, there may be early exit fees if you choose to repay all or part of the loan early, you could affect your means-tested state benefits, you cannot take another loan against your house and there are fees to pay which can often be higher than a traditional mortgage.

With the recent changes to traditional mortgage regulation there are many people now coming to the end of their mortgage term where their mortgage is on interest only and no way to repay the loan other than selling the property, equity release may be the answer that allows you to remain in that property.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Is equity release right for you?

• You need to be 55 or older
• Have permanent rights to reside in the UK
• Own your own home

Types of Property you can secure equity release against

• Main residence
• Buy to let Properties
• Second Homes

‘Equity release’ refers to home reversion plans and lifetime mortgages. To understand the features and risks, ask for a personalised illustration.