From funding the trip of a lifetime to helping your children onto the property ladder, the right equity release plan can open up a world of freedom and opportunity.
Retirement marks a new phase of life and we believe that you shouldn’t have to sacrifice your quality of life to afford it. If you’re a homeowner over the age of 55, then you may be able to use the equity within your home to release tax-free money that will help you to live the life you want.
Your future, your way
At AskERIC, we primarily deal with lifetime mortgages but do also offer home reversions and flexible lifetime mortgages. We believe these are the best choice for most people, offering flexible deals that can be tailored to suit most individual circumstances.
With a lifetime mortgage a loan is secured against your property, only needing to be repaid when the loan term ends, which is when the last homeowner passes away or enters long-term care. Some of the most attractive benefits of lifetime mortgages are that the payments are always tax-free, and you get to maintain ownership of your home.
There are six types of lifetime mortgage, each one designed to meet the needs of modern life:
Lump Sum Lifetime Mortgage
With a lump sum lifetime mortgage, you will receive a single lump sum payment to fund whatever you need. With no monthly repayments to worry about, you can make the most out of your money. This is a popular way to release a large amount of cash to pay for big expenses, such as buying a holiday home or helping your family.
Interest-only Lifetime Mortgage
An interest-only lifetime mortgage gives you the option to pay back some or all of the loan interest on a monthly basis. This means that amount of money that needs repaying when the loan ends is smaller, allowing you to leave more inheritance for your loved ones. This is a popular choice for people who have a secure income.
Flexible Lifetime Mortgage
A flexible lifetime mortgage gives you the option to make payments that suit you. With most lenders you can pay back up to 10% of the loan amount each year. Depending on the lender there may be some limits on the number of payments made in a year or a minimum payment required. By choosing a flexible lifetime mortgage plan, you’ll have a little more freedom as it allows payments without a commitment each month.
Enhanced Lifetime Mortgage
Enhanced Lifetime Mortgages are a popular choice for people with health conditions or have a lifestyle habit that might affect their long-term wellbeing, such as smoking. These plans allow you to release a larger amount of equity from your home, and the worse your health the more money you can release. Some people use this form of plan to make home adjustments that will accommodate their wellbeing, but you can use your cash however you like.
Drawdown Lifetime Mortgage
A Drawdown Mortgage gives you flexible access to your cash and is an effective way to pay less interest on your loan. You only withdraw payments when you need them, meaning you don’t pay interest on the total amount of money available until you have taken it all.
Protected Lifetime Mortgage
Protected Lifetime Mortgages are designed to protect the amount of inheritance that you choose to leave to your loved ones. As part of the agreement, you get to ring-fence a percentage of money for inheritance, giving you peace of mind knowing that your loved ones will be taken care of.
Is equity release for you?
The right equity release deal can be life-changing, unlocking the doors to a lifetime of possibility. It has the potential to transform your later years, allowing you to fully enjoy the retirement you deserve.
It’s important that you get sound financial advice from the outset and if possible, involve your family or trusted friends. Each plan comes with its own set of pros and cons, which you can read more about in more on our services page or you can discuss with us directly.
One of our advisors would be happy to have a friendly, no-obligation chat to answer any questions you might have.
You may have other options to finance your retirement, and we will always tell you if we don’t think that equity release is the best option for your circumstances.
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How Much Can I Borrow?
Our honest and dedicated advisors want to help you to fully understand how equity release works. Please read the below, and contact us to find out more.
Equity release may involve a Home Reversion plan or a Lifetime Mortgage which is secured against your property. Equity Release requires paying off any existing mortgage or secured loan. Any money released, plus any accrued interest is repayable upon death, or moving into long-term care. Please be aware that equity release will affect the inheritance you leave and may have an impact on your entitlement to means-tested benefits both now and in the future. To understand the features and risks ask for a personalised illustration. Only if you choose to proceed and our case completes would a typical fee of 1.5% of the initial amount released be payable.