– a few reasons you might consider a lifetime mortgage.
Equity Release is a way of tapping into some of the value of your home to unlock tax-free cash for homeowners aged over 55. It is a lifetime mortgage which is a long-term loan secured on your home.
Home Improvements
Whether it’s futuristic smart locks for your doors, a bigger room for your Aunt Betsy, or a solid set of grab bars for your bathroom, home improvements can be pricey. And as you age, you might find yourself needing to invest more to keep your home accessible
Clearing a mortgage or other debt
If you still have a small mortgage on your home, and there’s no regular income coming in to help pay it off, clearing that balance could be a real sigh-of-relief moment. Even if that’s not your main reason for applying – but if you do have a balance left on your mortgage – you’ll still have to pay it off first with the cash you release.
You may also have unsecured loans (which aren’t tied to an asset, like your home) that you’d like to clear as you head into retirement.
Putting it into property
You can use your lifetime mortgage to buy a second home or holiday home. This could provide a new source of income or be a savvy investment towards future summer getaways.
Boosting your retirement income
The current economic conditions, including inflation, are leading to higher prices for things like groceries and energy bills. In some cases, releasing equity might give you a sense of security and ease concerns about maintaining your quality of life.
With some lifetime mortgages, you can get a lump sum upfront and set up a cash reserve for later.
This could serve as a reassuring safety net when budgeting for upcoming expenses, especially if your pension fund isn’t quite as big as you’d like.
Getting around – or jetting off
somewhere
Rather than letting the value of your home just sit there, many release it to help them get out and about in different ways. Putting that money towards a car, for example, could help you stay mobile, independent and connected to friends and family in the years ahead. You may want to
devote a chunk of money to travel, whether that’s visiting loved ones who live overseas, or simply ticking off those yet-to-be-seen parts of the world from your travel wish list.
A second home or holiday home could provide a new source of income or be a savvy investment towards future summer getaways.
Financially supporting your family
Leaving an inheritance after you’ve gone might be important to you but, so might supporting your nearest and dearest while you’re still around. A lifetime mortgage can be used to lend a financial hand to children or loved ones, whether to help with debt, university fees, wedding costs or that tricky first leap onto the property ladder.
Whatever the reasons you’re considering releasing money from your home, remember that it is a major decision, and you’ll need to take financial advice, so please do not hesitate to contact us with any questions you may have.
It’s important to consider the benefits, costs and risks before deciding whether a lifetime mortgage/equity release is right for you.