Are you self-employed, retired, or unemployed and looking for equity release? Are you wondering if you are eligible? The short answer is yes! As you will need an advisor for equity release, we can go through all the details. Depending on your situation, it may get a little complicated. But we are here to help!
What is equity release? The equity in your home is the market value of your property minus any outstanding mortgage or other debt secured against it. In other words, it is the amount of money you’d get if you sold your home for cash. And with recent years’ property price increases, if you bought your home a while back, you may find that you have a large amount of equity in it! If you did not want to sell your home, equity release allows you to access this equity while continuing to live in your home and without having to make any monthly repayments.
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
Your employment should not affect equity release. The only time proof of income is required is if you want to opt for a payment plan.
With equity release, there is no requirement to repay the loan. But, some lenders offer interest servicing plans. (Which can provide a discount on the interest rate). If you opt for one of these plans, we require proof of income. It is usually the last SA302 or three months’ payslips. The three-month bank statement can be used. Providing the income is going into that account.
Just to complicate things a little more. There are a few lenders who offer plans that start as mortgages. But turn into Lifetime Mortgages at retirement age. These plans are stricter. The proof of income is the same as for a residential mortgage. We find, due to their strict criteria, they are uncommon.
Do you need help with equity release? Let us help take the hassle out of the process and set you up for the future.
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.
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