Equity Release Facts

All the Details You Need to Know About Equity Release in the UK

Here Are Some of the Top Equity Release Facts You Need to Know to Make Sure You Understand How Unlocking the Value of Your Property Can Boost Your Finances.

Equity Release Facts
In this Article

Every year more and more homeowners over 55 are using equity release to unlock money to fund a stress-free retirement.

Are you considering doing the same? If so, congratulations on researching all the facts about equity release to help discover if it’s right for you!

Through extensive research, we have put together the equity release facts that you need to know. Are you wondering what these are?

Continue reading to find out now!

What You MUST Know

Before you do so, first check out this quick video that summarises what you need to know about equity release:

5 Things You Might Not Know about Equity Release

So by now, you should understand what’s equity release, and are looking for all the facts.

Here are the 5 most critical facts to consider before releasing equity from your home:

You Can’t Pass On the Debt

1. You Can Make Multiple Withdrawals with Equity Release

While you can release your cash in one big lump sum, you don’t have to!

Equity can be released in 3 ways:

  • A single lump sum, generally to fund a big project, an investment, or pay for your dream holiday.
  • A few smaller lump sums, should you wish to have a few large cash injections over a period of time.
  • Monthly payments that will function like a salary. You can take out one initial amount, followed by these smaller monthly payments.
Be Sure to Get Financial and Legal Advice Before Taking Out a Plan

2. You Can Pay Back the Interest on Your Loan

One of the biggest pros of releasing equity from your home is that there is zero obligation to pay back any of the loan, or interest, during your lifetime.

Equity release interest is compound which means that the debt gradually increases with time.

While there is indeed no obligation, should you wish to, some products allow you to pay back the interest, or the debt, in monthly instalments or a lump sum. By doing so, you decrease the amount owed when you pass away or move into permanent care.

Why’s this good?

By reducing the amount owed on your equity release, your family will pay less from the sale of your home and, in turn, could receive a larger inheritance.

There Are Certain Guidelines to Moving Homes

3. Most Equity Release Products have a ‘No Negative Equity Gaurantee’

A ‘no negative equity guarantee’ has been set by the Equity Release Council to ensure that your family is not left with equity release debt when you pass away or move into permanent care.

In a nutshell, the guarantee ensures that any additional funds owed from your equity release will be written off if they exceed the resale value of your home, even if property prices plummet.

Basically, if your house is sold and the loan, plus interest, exceeds the sale price, nothing further will be owed. If, however, there are leftover funds after the loan, plus interest, is covered, this income will go to your heirs.

The Equity Release Council is the body that regulates equity release. It’s vital when looking to release equity from your home to avoid any companies that are not members of the council.

You Don’t Have to Pay Back the Cash

4. You Have the Right to Stay in Your Home

According to the rules set out by the Equity Release Council, you have the right to stay in your home throughout the course of your equity release plan.

Isn’t that fantastic?

In other words, whether you go with a lifetime mortgage or a home reversion scheme, you will be allowed to live in your house until you die or move into permanent care.

Equity Release Facts

5. You Don’t have to Own Your Home Outright to be Eligible for Equity Release

Great news!

You can still take out an equity release plan even if you have a remaining mortgage. This might just reduce the amount that you can access.

In addition, most lenders will expect you to use the funds you receive to pay off your mortgage, giving you the remaining equity to spend as you wish.

Value Amount

Got Questions? Check These Out First!

Can You Lose Your House with Equity Release?

Can Equity Release be Paid Back?

Do I Pay Tax on Equity Release?

In Conclusion

After learning these facts, are you still wondering: “is equity release a good idea?” The short answer is yes!

If done right, equity release can be an excellent financial plan. Just be sure to think carefully, weigh up all the pros and cons of equity release, and discover the equity release pitfalls before making your final decision!

What People Say

How Much Can You Release?

Use the FREE Calculator Below

Equity Release Calculator

Value Of Your Home?

(Drag the Slider)

0

We Hate Spam as Much as You. 100% Secure.

Our Most Popular Equity Release Resources

How Does Equity Release Work

How Does Equity Release Work?

How Does Equity Release Work in the UK? Learn About The Critieria Here. We’ll Take You Through the Process Step-by-Step & Answer All Your Questions.

Who are the Best Equity Release Companies

The Best Equity Release Providers

Are You Looking for the Best Equity Release Company in the UK? Find Out Which Equity Release Schemes to Avoid & Which Equity Release Providers Are the BEST…

Got a Question?

Need a Quick Answer?

* Get an expert to give you a quick call.

How Much Equity Can You Release?

Most people are using Equity Release as a means of retaining the use of their house while also obtaining a lump sum or a steady stream of income. Get matched with an expert and check your eligibility for equity release options.

Use our free equity release calculator & see how much you can release today.

Request a Call Back Below

We’ll get an expert to call you back shortly.

Equity Release Call Back
Please check your details are 100% correct

We Hate Spam as Much as You. 100% Secure.

Request a Call Back Below

We’ll get an expert to call you back shortly.

Equity Release Call Back
Please check your details are 100% correct

We Hate Spam as Much as You. 100% Secure.

How Much Can You Release?

Use the FREE Calculator Below

Equity Release Calculator

Value Of Your Home?

(Drag the Slider)

0

We Hate Spam as Much as You. 100% Secure.

Request a Call Back

Equity Release Call Back
Please check your details are 100% correct

We Hate Spam as Much as You. 100% Secure.