Call us
01242 697821

Blogs

Keep up to date with the latest news and our guides on all things mortgages. 

Can a lifetime mortgage help your growing family?

Our first grandchild is joining the family in a few months. Can I use equity release to help them prepare for the future?

 

Congratulations on the upcoming addition to your family! Equity release can be a way to access value tied up in your home, helping you provide financial support for your grandchild.

 

Wouldn’t it be nice to have the funds to help with your own retirement needs and support your loved ones financially?

 

Traditionally, we leave the nest egg we’ve carefully built up, passing along property after we die. However, with more people living longer, it’s becoming increasingly common to help your loved ones. Sooner rather than later.

 

For example, say your children are having to look for property further away to afford a home of their own. Then you heard about equity release.

 

A lifetime mortgage could help unlock £££ from the value of your home, helping your family get on the property ladder and keep the family nearby. It can also free up other costs associated with having a baby, like buying cots, car seats, prams, etc.

 

Let’s take a closer look at the benefits of a lifetime mortgage:

  • You can unlock cash from your home, tax-free, to help meet your needs in later life.
  • You’ll always retain full ownership of your home and can stay in it for as long as you wish
  • You can choose to make reduced or no monthly repayments to suit your circumstances
  • You’ll never owe more than your home’s worth with a lifetime mortgage
  • You may be able to remortgage your plan in the future to release further funds or secure a better interest rate, although this isn’t guaranteed and may be subject to early repayment charges

Now, the drawbacks:

  • A lifetime mortgage is a loan secured against your home and subject to compound interest. Meaning the amount you owe can grow quickly
  • Equity release will reduce the value of your estate. And may affect your entitlement to means-tested benefits
  • Equity release may leave you with limited or no property equity remaining
  • Equity release will reduce your financial options in the future
  • A lifetime mortgage is a long-term financial product. It is not designed to be fully repaid until the death of the last remaining borrower; otherwise, early repayment charges may apply.

Is equity release right for you?

For homeowners aged 55 and over with a property worth £70,000+, it helps to release some of the tax-free cash from your property. However, it’s not right for everyone.

 

Factors to Consider

Releasing equity from your home will reduce the amount of inheritance you can pass on. It's important to discuss this with family members to ensure everyone understands the implications.

 

Lifetime mortgages can be a powerful tool for accessing the value of your home. But they require careful consideration. Use professional advice to ensure they are the right choice for your circumstances.

 

Chat with us today to see how we can help!

 

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://www.keyadvice.co.uk/equity-release/why/take-care-of-family-and-friends

Related

Equity Release - could you release funds to help family with the cost-of-living crisis?

Equity Release - could you release funds to help family with the cost-of-living crisis?

While the cost-of-living crisis rages on, many of us are looking at ways we can tighten our belts.If...

Read More >
Show your finances some love

Show your finances some love

Just like any meaningful relationship, building a strong connection with your finances requires time...

Read More >
Consider international health insurance for your travels or relocation abroad

Consider international health insurance for your travels or relocation abroad

Protecting your health abroad might be important to you if you travel a lot, as it provides reassura...

Read More >
Ofcom’s top tips to stay safe from scammers

Ofcom’s top tips to stay safe from scammers

Scams have been on the rise in recent years – recent research by Ofcom shows 41 million people rece...

Read More >
Equity Release: Unleashing the Potential of Your Home's Equity

Equity Release: Unleashing the Potential of Your Home's Equity

Equity release has gained popularity among homeowners who are in their retirement years and wish to ...

Read More >
Supporting you through the cost of living squeeze and rising interest rates

Supporting you through the cost of living squeeze and rising interest rates

We understand that the current challenges we are all facing in light of the ongoing cost of living s...

Read More >

What our clients say...

Latest Blog

Health Insurance and Buying a New Home: Why They Go Hand in Hand

Buying a new home is an exciting milestone but also a significant financial commitment. While health...
Read More

Selling this spring? Top tips to get your house ready for sale!

Firstly, let’s ask, how does your house look from the street? First impressions are so important wh...
Read More

What insurance do you need to buy a home?

Are you buying a home in 2025? You’ve sorted out your finances, found the perfect home to buy, and ...
Read More

Protecting Your Family’s Financial Security with Life Insurance

When you buy a new home, you're often making one of the largest financial commitments of your life. ...
Read More

Can I use equity release to buy a new home?

Whether you are looking to purchase a new home to move into or purchase a property for a family memb...
Read More

Get prepared now for a big remortgage opportunity in 2025!

In 2025, there is a massive remortgage opportunity. Are you one of the 1.8 million mortgage borrower...
Read More

How technology is shaping the future of general insurance

From AI-driven claims processing to integrating Internet of Things (IoT) devices for personalised co...
Read More

Insured private healthcare admissions at near-record levels

Did you know private healthcare admissions are up, according to the Private Healthcare Information N...
Read More

What is probate and could it affect a life insurance claim?

A grant of probate is sometimes needed when valuable assets, such as property and shares, are left i...
Read More

Manage cash flow by leveraging your equity

Loading up the credit card is something we see all too often. But have you thought of leveraging the...
Read More


Fairview Financial Ltd is an appointed representative of The Right Mortgage Limited, which is authorised and regulated by the Financial Conduct Authority. Fairview Financial Ltd is registered in England and Wales no: 10912424. Registered office: 107 Promenade, Cheltenham, GL50 1NW.

The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.

@ 2020 by Fairview Financial

Our Fees        

A fee may be charged for mortgage advice. The exact amount will depend on your circumstances.

Our standard fee for mortgages is £395 and this is paid when the mortgage is offered. We charge a fee of £295 First-Time Buyers. Other fees may apply depending on the complexity of the work involved or loan amount. The maximum fee we can charge is £795.

Our standard fee for Equity Release is £895 and this is paid on completion.

We also receive a commission from the lender that will vary depending on the lender, product or other permissible factors. The nature of any commission model will be confirmed to you before you proceed. If we receive a commission, this will not affect the cost payable by you.

THINK CAREFULLY ABOUT SECURING OTHER DEBTS AGAINST YOUR HOME.

YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBTS SECURED ON IT.

BUY TO LET MORTGAGES ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.

EQUITY RELEASE: THIS IS A LIFETIME MORTGAGE. TO UNDERSTAND THE FEATURES AND RISKS, PLEASE 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.


  • Back to top