25 August 2021
Maxim Cohen, chief executive of The UK Adviser Group, talks about what exactly equity release is, why people might use it, why people should make use of it and why the use of it is increasing.
What is equity release?
The most common form of equity release is a lifetime mortgage. A lifetime mortgage is a loan secured against your home, it’s typically repaid when you or the last surviving partner passes away or enters long-term care. You retain full ownership of your property and there are typically no monthly repayments to make, as the loan, plus roll up interest, is repaid when the plan comes to an end.
How does a lifetime mortgage work?
If you are 55 years or older, you can qualify for a lifetime mortgage. The lifetime mortgage is calculated on your age and property valuation. The older you are, the more you are able to raise.
The loan can be taken in two ways, an initial amount that has a fixed interest rate (usually for the life of the mortgage) and a drawdown facility (that does not cost unless you use it).
Read more here: https://www.propertywire.com/news/a-guide-to-equity-release/
