🔔 A fresh start for your finances

Author: Anna Bowes
07th December 2018

Could releasing equity be the boost your budget needs?

Wooden model house on grass

The New Year can represent the chance for a fresh start, a clean slate, and the opportunity to make a change. If you are looking to go one better in 2019, then increasing your budget to achieve your goals could be key. If you are a UK homeowner, aged 55 or over, then unlocking a portion of your equity with a Lifetime Mortgage could be a solution.

Long-term growth in the value of property across the country means that your home may be worth significantly more than you had expected. Taking advantage of this growing wealth can be a great way to achieve a number of ambitions. In fact, homeowners released over £1 billion pounds worth of equity in the third quarter of 2018 alone.¹

This is what a Lifetime Mortgage is designed to do, it simply allows you to unlock a portion of this wealth as tax-free cash while retaining full homeownership, with no required monthly payments. It is these two features that have helped drive the growth of releasing equity with a Lifetime Mortgage, making it a popular way to leverage on-paper wealth.

Additionally, there are portable plans available, so you can take your Lifetime Plan with you should you wish to move. You just have to ensure that the new property meets the lender’s criteria. The loan, plus interest, can be repaid through the sale of your home once you and your partner have passed away, or entered into permanent residential care.

The funds you release can be used any way you wish, such as funding that dream home makeover you always wanted. This has the added benefit of potentially adding value to your home and allowing you and your family to get the most out of your home for years to come. Lifetime Mortgage customers also like to use some of their property wealth to help with intergenerational lending. This could take the form of a living inheritance or as a contribution towards a deposit on a house. By gifting in this way, you get to enjoy seeing your money making a difference now, while retaining some measure of control over how the funds are spent.

The most significant consideration when releasing equity is to have a clear understanding of your financial situation and how it may change. This is because using some of your property wealth now may reduce the value of your estate in time and could affect your entitlement to means-tested state benefits. An adviser can provide you with a personalised illustration and recommend the most suitable plan for your situation.

Strong product diversity means there is likely to be a plan to match your needs, so you can convert a portion of your home’s value into tax-free cash with confidence.

Who are Responsible Equity Release?

We have partnered with award-winning equity release specialists Responsible Equity Release who’s expert Information Team is on hand to talk you through the entire process and answer any questions you might have today. Just like us, they endeavour to get you the best deal for you and your family, with no obligation.

⇨ Find out how much cash you could release

To find out how much tax-free equity you could release today, why not use our free online calculator?

Responsible Equity Release is a trading style of Responsible Life Limited. Responsible Life Limited is Authorised and Regulated by the Financial Conduct Authority and is entered on the Financial Services Register under reference 610205. Only if the case completes will Responsible Life Limited charge an advice fee, currently not exceeding £1,490.

¹ Source: moneyfacts.co.uk ‘£1bn equity release milestone reached’ 24.10.18

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