Did you know you can use equity release for gifting? Also known as a lifetime mortgage, you can help your children/ grandchildren have the wedding of their dreams. It may also fund your home improvements or pay off some debts. Or maybe help you plan and enjoy your own wedding?
To qualify for a lifetime mortgage, you'll need to:
• Be aged 55 or over
• Own your home, with little or no mortgage left to pay
A lifetime mortgage can help you gift your loved ones a 'living inheritance'. Rather than leaving a lump sum after you pass. You can see them move into their new home or help them with the cost of a wedding. Using the value of your home.
If your loved ones are planning a wedding in 2024, they'll be looking at spending an average of £20,775*. However, most young couples preparing for upcoming nuptials haven’t saved enough. And so, we are seeing more and more parents chipping in!
With a lifetime mortgage you can release up to around 60% of the value of your home. How much you can release depends on your age and the value of your property. You can chose to have no monthly repayments or you may pay off the interest or even make repayments, depending on the product you chose. The amount you can repay is based on your income and this will be assessed by the lender.
The main advantages of equity release are:
- You don’t need to have paid off your mortgage in full to be eligible for equity release
- You still own your home and you will continue to live in it
- There are no monthly repayments
- The money you release is tax free
- You can take the money in one lump sum or smaller instalments
There are many things to consider before an adviser can recommend you the right equity release product and that is why you need to be prepared for a thorough process. Equity release should not be a decision to take lightly and you should weigh up all the advantages and disadvantages. Our advisers are qualified experts who will take their time to understand your circumstances and support you through the entire process.
The practice of borrowing against your home to help fund a wedding for your children or grandchildren is growing. The rising cost of getting married has made weddings a popular reason for lifetime mortgages.
Borrowers should remember that lifetime mortgages have higher interest rates than their regular counterparts.
Chat with us today to hear your options and plan your child's or grandchild's dream wedding. Or even your own!
SPEAK TO AN ADVISER
This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice. A fee may be charged for mortgage advice. The exact amount will depend on your circumstances.
*Source: *https://bridebook.com/uk/article/how-much-does-a-wedding-cost-the-2024-uk-average#