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Using equity release to help family

Help those that matter most to you in later life by giving your family the financial support they need.

See them happy now

Typically, we all work our way through life to provide for ourselves and those around us. And when our time comes to an end, we leave behind what we can in hope that it contributes towards helping and supporting those that matter most to us – our loved ones.
However, wouldn’t it be better if you could help them when they need it most and see the benefit it makes today, not just in the future when you’re no longer around?


Using equity release to help family

Equity release is a financial option that allows you to unlock some of the funds tied up in your home. It comes in two forms; a lifetime mortgage and a home reversion plan.
By taking equity release, you could provide the financial support your family needs now, rather than waiting until the future. That could be gifting some money towards a deposit on a new home, paying university fees or getting a family member on the road with a new car.
So, whatever the requirement, equity release could make a difference, with the added bonus of you still being around to see it.


Using a lifetime mortgage to help family

A lifetime mortgage is one way to unlock tax-free cash from your property. It’s similar to a standard mortgage in that it's a loan secured against your home – however, there are no monthly repayments for you to make unless you choose to.
With a lifetime mortgage, you still own your property, and can live there for as long as you wish, meaning you can support those who matter most without having to raise the funds by downsizing or moving out of an area you love.
That’s because the loan, plus compound interest, is typically repaid when the plan ends and your property is sold. That usually takes place when the last remaining applicant either passes away or moves into long-term care.
However, that doesn’t mean you can’t leave something behind for your loved ones when the time comes. As with some plans, you’re able to protect a percentage of your home’s future worth to leave as an inheritance.
As well, with a lifetime mortgage, you don’t have to take all the money in one go. You can choose to take it in one lump sum, or if you’d prefer, release an initial lump sum, and more when you need it (subject to minimum amounts) – giving you extra financial security for the future. Not all drawdowns are guaranteed. If you choose to make a drawdown, the funds will be subject to the prevailing interest rate at the time and the lender may have the option to withdraw the drawdown facility.

See how much you could release

See how much tax-free cash you could unlock from the value of your home with our free equity release calculator.
Calculate Now


Using a home reversion plan to help family

A home reversion plan also allows you to use some of the funds tied up in the value of your home to support your family.
However, with a home reversion plan, instead of unlocking cash by securing a loan against your property - as you do with a lifetime mortgage - you sell part or all of your home to a reversion company for a cash lump sum. That means you will no longer be the legal owner, and would become a beneficial owner with a guaranteed lifetime lease to stay in the home for as long as you wish.

There are no monthly repayments to worry about, you can live in the property for as long as you wish. With a home reversion a clearly defined percentage of your home remains yours for potential future use or as inheritance, unless you have sold the full value of your home. If property prices increase, you only benefit from the increase in value on the proportion of the property you retain. 
Also, a reversion company won’t pay you market value for the portion you sell, meaning you may have to sell a bigger stake in your property to raise the funds you need.

Mortgage Advice Bureau Later Life do not offer home reversion plans, and offer lifetime mortgages only. 

We’re here to help you find the right option

If you’re thinking about taking out equity release on your home, you’ll likely have a lot of questions. That’s natural; it’s an important decision that you should think about carefully.
It’s why we’re here to help. We understand equity release doesn’t suit everyone’s needs, and we’ll never recommend it unless we’re certain it’s the right option for you.
We also don’t charge for our services unless you decide to go ahead. So, you can find out if equity release is a suitable financial option for you before facing any fees.


See how much you could release

See how much tax-free cash you could unlock from the value of your home by using our quick and easy lifetime mortgage calculator.
Calculate Now

Your other options

Before deciding on equity release, it's important you're aware of some of your other later life finance options. 

See if equity release is right for you

Equity release costs

Knowing the costs associated with equity release and how to help manage them is important.

Compound interest explained | Lump sum vs Drawdown

Things to consider

Because we play by the book we want to tell you

  • Mortgage Advice Bureau Later Life offer lifetime mortgage products from a carefully selected panel of providers.
  • Mortgage Advice Bureau Later Life offer lifetime mortgages only, which is a loan secured against your home.
  • As part of our advice process, we'll consider whether retirement interest-only (RIOs) and other mortgages may be suitable and can arrange advice on these if appropriate. Advice fee will vary.
  • Unless you decide to go ahead, our service is completely free of charge, as our fixed advice fee of £1,295 would only be payable on completion of a plan.
  • With a lifetime mortgage there are typically no monthly repayments to make, 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.
  • Equity release will reduce the value of your estate and may affect your entitlement to means tested benefits.
  • A lifetime mortgage may result in limited or no property equity remaining and will reduce your finanical options in the future.