You can use a home equity release mortgage to raise a tax free cash lump sum or generate a regular monthly income from your home. The equity in your property is the value of the property minus any outstanding mortgages or secured loans.
The equity release mortgage is currently the most popular way of raising tax free cash from a property.
Home Equity Release
As the saying goes, “Your home is your castle”, you can take a home equity release on your property if you are over 55 years of age. If there is more than one person on your home’s title deeds then all parties need to be over age 55.
Home Equity Release Mortgages Calculator
Use the home equity release mortgages calculator to find out how much equity you can release.
Equity release schemes come in two main types:
- Lifetime Mortgages
- Home Reversions
The main home equity release mortgage is a lifetime mortgage, which is a loan secured on your property and can be either an interest only mortgage, where you pay interest on the loan each month, or a roll up equity release scheme. With roll up equity release mortgages you do not make any monthly payments of interest.
Home reversions are where you sell all or a part of your home to a home reversion provider. You have the right to live in your property for the rest of your life, when you die the part you still own, if any, is passed onto your estate.
Equity Release Calculator
You can use an equity release calculator to quickly find out how much you can release from your home. Once you know the amount of equity you can release you then need to decide which type of equity release loan you think suits you best. Choosing between lifetime mortgage and home reversions can be difficult and you should seek professional advice.
Equity Release Advice
The advice of an independent equity release adviser can be invaluable. With these type of home equity release schemes and the age group they are targeted at it is critically important to get equity release advice.
