Equity Release Mortgages
Equity release mortgage is a way of using the cash in your home which has built up over time, to help fund various expenses that a homeowner may have. Releasing equity from within your property can have many uses including consolidating debts, holidays, university, schooling fees and other financial commitments.
Having equity in your property can often put you in a better financial position for many reasons. Over a period of time the property you live in can gain in market value and build of equity occurs.
Who are they used by?
Equity release mortgages are used by many people young and old. These types of mortgage offerings have attracted the older age group market of recent years as releasing equity from their property to compensate for reduced financial income has become more popular.
How equity mortgages work?
Equity release mortgages provide you the opportunity to release money in your property that can either be taken as a single one off cash lump sum or distributed over a period of time and provide you with a regular income.
Are there different types of equity mortgages available?
There can be different terms and variations for equity mortgages but in general there are two key types:
The advantages of equity release mortgages
- Provides you with the opportunity to access money when you require it.
- Provides you with a place of residence.
- Possibilities of reducing tax implications such as inheritance
The disadvantages of equity release mortgages
- Your home cannot be left for your family estate.
- Property value increases may be difficult to claim for.
- Age restrictions apply to qualify for certain equity release mortgages.