Equity Release Under 55
If you are equity release under 55 and looking to access the equity in your home you may have a number of options available. The main one is to take out a secured loan with an interest-only mortgage. This allows you to lever up the value of your property without having to pay back any capital, but you will still need a repayment strategy in place to repay the debt at the end of the term.
If your home is freehold then you can also consider a lifetime mortgage or home reversion scheme. These allow you to sell all or a proportion of your home equity and retain full property ownership but do carry a lifetime interest rate that will be charged for the rest of your life. Many lenders will lend to homeowners under 55, and some have low rates. TSB for example does not haircut valuations on leasehold flats and also accepts non-standard construction homes.
Equity Release Under 55: A Comprehensive Guide to Tapping into Home Wealth Early
If you are considering either of these options it is important to seek the advice of a professional independent financial adviser. They will be able to talk you through the pros and cons of these types of financing. They will be able to explain the impact on any inheritance for your family, and any other implications that could arise. The article has been written by Andy Vickery CertCII (MP & ER) who is a qualified equity release and mortgage advisor at Concise Finance. This should not be considered as financial or legal advice.