With a lifetime mortgage the money you release is tax-free and can be taken as a lump sum or a smaller initial amount followed by smaller releases at a later date.
You’ll continue to own your own home and with plans that meet the Equity Release Council's standards there’s a no-negative-equity guarantee, meaning you’ll never owe more than your home’s worth. A lifetime mortgage may result in limited or no property equity remaining.
Many find the main benefit is that typically you don’t have to make any monthly repayments unless you wish to, as the loan plus compound interest is typically repaid through the sale of the property when the last remaining applicant passes away or moves into long term care.
Your equity release adviser will also outline the following important things to think about:
Before deciding on equity release, our advisers will make sure you're aware of some of your other later life finance options such as retirement interest-only or retirement payment mortgages.
Knowing the costs associated with equity release and how to help manage them is important.
Compound interest explained
How much does equity release cost?
