A guide to understand how you can benefit
Equity release with a Lifetime Mortgage allows homeowners to take advantage of the value of their home while retaining full ownership.
There are three types of lifetime mortgage: The Roll-Up, the Drawdown, and the Flexible Lifetime Mortgage.
All allow you to release a tax-free lump sum and there are no required monthly repayments.
The mortgage and accrued interest can simply be repaid when both you and your partner pass away or move into long-term care.
Additionally, Equity Release Council (ERC) approved lenders provide Lifetime Mortgages with customer safeguards, such as the no negative equity guarantee.
This means that you will never owe more than the value of your home and cannot pass on any Lifetime Mortgage debt to your estate.
When releasing equity it is important to understand your current financial situation and how it might change. By using a portion of your equity now, you may reduce the value of your estate, and could affect your entitlement to means-tested state benefits.
Ask for a personalised illustration to help you understand all the features and risks, so you can choose a plan that best suits your needs.
For example, plans such as a Drawdown allow you to release an initial lump sum while creating an interest-free reserve fund for the future. This minimises the amount of interest you pay, as you only pay on the initial money you choose to draw down.
If you are worried about the roll-up of interest over time, you could use a flexible mortgage to pay off the interest each month.
Some mortgages also have the option to pay off up to 10pc per year of the total amount released, penalty free.
If you are looking for a way to harness the potential of your property wealth, then why not have a free, no-obligation discussion with a member of Responsible's Information Team. They are on hand to answer any query you may have and can book in a face-to-face appointment with a member of our nationwide team of advisers.
Who is Responsible Equity Release?
Savings Champion has partnered with award-winning equity release specialists Responsible Equity Release.
Responsible Equity Release have been providing the nation’s homeowners over 55 with quality later-life financial solutions since 2010.
Like us, they are passionate about what they do and combine modern financial solutions with good old-fashioned customer service.
Responsible Equity Release have a nationwide team of equity release experts on hand, ready to discuss your needs and wants for your financial future.
All the providers they recommend are approved by the Equity Release Council, meaning that all customer-focused safeguards come as standard.
Giving you the peace of mind to enjoy the comfortable retirement you deserve. With free, no obligation advice and personalised illustrations, they can help you find the Lifetime Mortgage that will match your later life ambitions.
This expertise is vital, as accessing some of the equity from your home with a Lifetime Mortgage may affect the value of your estate and your entitlement to means-tested state benefits. Plans are available that can help you to mitigate these impacts.
Notes
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 case completes will Responsible Life Limited charge an advice fee, currently not exceeding £1,490.
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