Equity Release
If you’re over 55 and own your own home, you could consider equity release. There are various products you can use to release equity, and these generally fall into these three categories:
A lifetime mortgage:
This is a popular form of equity release, whereby you borrow a percentage of your home’s value at an interest rate that’s fixed or capped. You can then either take the money out as a lump sum or withdraw it in smaller chunks as and when you need it (this is known as drawdown). If you choose to draw down on the money, interest will only be charged on the cash you’ve taken out, not on the money yet to be taken out.
Important reminder: If you don’t make repayments on a lifetime mortgage the interest could quickly compound up and the amount you owe will continue to increase.
Home reversion plans
These are for the over 60’s and with this scheme a provider pays you a tax-free sum for a portion of your home, at below market value. You can then live, rent-free, in the property, until you die.
When the house is sold the proceeds will be split based on the percentage you and the lender owns. If your property rises in value significantly the lender will reap the benefit.
Home reversion plans
These are for the over 60’s and with this scheme a provider pays you a tax-free sum for a portion of your home, at below market value. You can then live, rent-free, in the property, until you die.
When the house is sold the proceeds will be split based on the percentage you and the lender owns. If your property rises in value significantly the lender will reap the benefit.
Retirement interest-only mortgages (RIOs)
These are similar to lifetime mortgages but it’s compulsory to make repayments every month. While not technically a form of equity release, RIOs are very similar, since they give you a sum of cash that’s secured against the value of your home.
If you have a stable monthly income they can provide you with a good way of raising cash, and you can take one out even if you have an existing mortgage. If you can afford the repayments a RIO will be a cheaper option than a lifetime mortgage since you’re paying the interest off every month.
Independent equity release advice
Kingsmarque can help guide you through your options and discuss whether equity release could be the right thing for you, based on your individual circumstances.
We’ll tell you how much you can borrow, and help you weigh up which equity release product would suit you best. Being fully independent, we’ll help you compare all the products on the market. Kingsmarque also help you assess the impacts of equity release, for example, the fact that releasing equity in your home could affect any benefits you’re entitled to.
We’re here to help you consider all the other options open to you too if equity releasing is unsuitable for you. If you’re thinking about equity release please get in touch and I will be happy to discuss your options with you.
This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.
Independent equity release advice
Kingsmarque can help guide you through your options and discuss whether equity release could be the right thing for you, based on your individual circumstances.
We’ll tell you how much you can borrow, and help you weigh up which equity release product would suit you best. Being fully independent, we’ll help you compare all the products on the market. Kingsmarque also help you assess the impacts of equity release, for example, the fact that releasing equity in your home could affect any benefits you’re entitled to.
We’re here to help you consider all the other options open to you too if equity releasing is unsuitable for you. If you’re thinking about equity release please get in touch and I will be happy to discuss your options with you.
This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.
Asad was very knowledgeable and explained how he could help with the various aspects of my finances.
He was polite and friendly throughout. Thank you!
The financial adviser Asad Khan made contact with me very quickly.
He was able to answer questions I asked regarding my pension and advised me what I should do next.
Asad was super helpful and intuitive. He provided lots of options and tailored solutions, which was exactly what we wanted.
