Paying off an existing mortgage
When you take out equity release, if you have an outstanding mortgage or any other debt secured against your home, you must pay this off first with the funds you release. Without monthly mortgage repayments, you could free up your retirement income, as well as have some peace of mind for the future.
Home and garden improvements
You could choose to spend the equity release funds to improve your home or garden. It could be for a personal want – creating more space with a new conservatory or loft conversion, or simply renovating it with a new bathroom or kitchen. Some also choose to renovate their home for a more practical reason – ‘future proofing’ it with walk in showers or stair lifts to ensure they can stay in their homes for longer.
Paying off existing debt
People could also retire whilst being in debt, and it can often disrupt what should be an enjoyable time in life. Using equity release funds to pay off any existing debt from credit cards to loans can help alleviate the cycle of paying minimum monthly payments and free up your income to spend on the things that matter to you.
Gifting to loved ones
We’re all living longer and it’s becoming increasingly common to help your loved ones sooner rather than later, providing an inheritance while you are around to see them enjoy it. Equity release can provide a lump sum which can be used as a financial gift to help loved ones fund their education, get onto the property ladder or simply ensure their financial security.
As incomes traditionally drop, managing your finances in retirement can be a challenge. By taking out a lifetime mortgage, the most popular form of equity release, you could have the option of taking an income to boost your retirement finances, funding a more comfortable retirement.
You’ve worked hard all your life and paid into your home, so when retirement approaches, it’s great to know your home could pay you back. Whether that’s paying for the trip you’ve always wanted to go on or simply travelling to see family more, it’s up to you.
How we can help
Equity release isn’t a single-use financial product – many customers use the funds released for more than one reason, including helping with regular bills.
At Mortgage Advice Bureau Later Life, we can help with advice, ensuring that you balance both your short-term and longer term financial needs. We’ll make sure you have all the facts and understand your options, so you can feel confident that any decision you make is the right one for you.
Find out how much you could release
The first step to find out whether equity release could help you is finding out how much you could release from your home. Use our free equity release calculator for instant results.
Things to consider:
- We understand equity release isn’t for everyone, and we’ll never say it’s the right option for you unless we’re certain.
- Mortgage Advice Bureau Later Life offer lifetime mortgages only, which is a loan secured against your home.
- With a lifetime mortgage there are typically no monthly repayments to make as the loan, plus roll up interest, is repaid when the plan comes to an end. Usually, that’s when you, or the last remaining applicant, either passes away or moves into long-term care.
- You should always think carefully before securing a loan against your home.
- With a lifetime mortgage you’ll still retain full ownership of your home.
- Equity release will reduce the value of your estate and may affect your entitlement to means tested benefits.
- Mortgage Advice Bureau Later Life offer lifetime mortgage products from a carefully selected panel of providers.
- Unless you decide to go ahead, our service is completely free of charge as our usual advice fee of 1.5% of the amount released would only be payable on completion of a plan, subject to a minimum advice fee of £695.