As we get older, we may start to think about how we’ll mange financially and especially if we have a low income and limited savings. If you're over 55 and a home owner equity release could be suitable for you.
What is equity release
If you're aged 55 or over and a home owner equity release is a way of releasing money from your home without needing to move. There are two main types of equity release which are regulated by the Financial Conduct Authority (FCA):
- Lifetime mortgage- This is the most common type of equity release. This is when you borrow money which is secured against your home and this is then usually repaid from the sale of your home when you die or move permanently into residential care.
- Home reversion plan- This is when you raise money by selling some of your home but then continue to live in it until you die or move permanently into residential care.
What is equity release for?
Equity release can be used for a wide variety of purposes including:
- Adapting your home so you can continue to live independently in it
- Carrying out necessary repairs to your home
- Improving your home
Is equity release for me?
Applying for equity release is a big decision and it might not be the best solution for you. It is important that you get financial advice from a specialist equity release adviser. If you do go ahead with equity release, you will also need legal advice. Age UK have produced a detailed guide about equity release which is a good place to start if you want to find out more.