Unlocking the Value in your Home

Recent data reveals the staggering potential wealth available to the UK’s elderly homeowners

Accessing a portion of the equity stored in your home now could provide you with a timely financial boost in later life. If you’re a UK homeowner over the age of 55, you may be eligible for a lifetime mortgage that could see you access as little as £10,000 of the wealth in your property which could help to provide you with financial security and freedom in retirement.

A lifetime mortgage allows you to convert some of the value of your property into a tax-free cash sum, without having to give up ownership of your home. Lifetime mortgage plans have no fixed-end date and come with no required monthly repayments, so the funds you release are yours to spend as you wish. The mortgage and accrued interest are not due for repayment until both you and your partner either pass away or both enter long-term care.

If you are concerned about the build-up of the loan value over time, plans are available that allow you to pay off up to 10% of the mortgage balance each year without penalty. This can help offset the interest accrued and help to secure some of the property’s wealth for your future use.

What’s more, with plans from Equity Release Council-approved lenders you will benefit from the safety of the no-negative equity guarantee, ensuring that you and your family will never owe more than the value of your home. Approved plans also allow you the option of moving to a suitable alternative property, subject to the lender’s criteria.

On top of this, competitive rates of fixed interest are available, which allow you to get an accurate projection, so you know exactly what is happening with your money at all times.

There’s no need to face the golden years of retirement with the clouds of mortgage debt or limited incomes looming on the horizon. After years of responsible saving and hard work, your property could provide you with the financial boost to face the future with confidence, so you can have the retirement you deserve.

If you have an interest only mortgage but no repayment vehicle in place, it could be quite a worry if the end date of your mortgage period is approaching.  A lifetime mortgage is used by many to repay their existing interest only mortgage which then alleviates those worries.  In addition, once the interest only mortgage is repaid, the monthly payments you have been making can stop therefore releasing funds into your monthly budget for you to enjoy!

You may be surprised at just how much wealth is tied up in your home.  Although not an exact science, you can get an idea of what your home may be worth from websites such as Zoopla.  By simply typing in your street name, Zoopla will provide a list of the recent sale prices of homes throughout the UK

Releasing only a small proportion of your home’s value could provide you with a key to enjoy more financial freedom.  With interest rates being very low, many are finding out just what a Lifetime Mortgage can do for them.

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