Accessing tax-free cash from your home is still an option during current climate
IS IT open? Is it working? Can I get one?
These are the questions we’re all asking constantly right now, whether we want to buy or apply for just about anything.
The current economic climate has turned life on its head in so many ways, and a huge range of the deals and services that were once on offer – especially when it comes to our money – look very different.
Take mortgages for example. Last week, the government allowed estate agents to go back to work buying and selling homes in a bid to help kick-start the economy.
The loans to help pay for those homes may not be available, with some lenders withdrawing deals and thousands of sales still on hold while banks reassess individual situations.
It could be months before the real impact of lockdown becomes clear and we find out how the current situation, and our response to it, have affected the value of property.
Having the option of accessing money tied up in bricks and mortar could now be more important than ever for thousands of people up and down the country.
The option of downsizing to a smaller property should always be something that people consider before progressing with equity release.
- Find out how much equity you could release
Can I release equity from my home at the moment?
In amongst all the uncertainty, the equity release market is open for business as usual.
After a period of careful assessment and taking stock, many of the big household names are back working as normal with homeowners to release tax-free cash from their homes through a loan secured against their property.
And you don’t need to leave that home or meet anyone face-to-face to find out more, apply or be accepted.
To keep clients and staff safe, specialist equity release broker Age Partnership conducts appointments over the phone or via their dedicated video-based advice service – whichever is preferred.
What’s more, their services are now available seven days a week to help you work out if equity release could be the right solution for you.
- Calculate how much tax-free cash you could access
Is equity release a good idea right now?
Age Partnership is helping many homeowners who have chosen to release equity from their property to pay off an existing mortgage and put an end to their regular monthly repayments.
Others have unlocked the money in their family home to support loved ones with a cash gift at a time when financial flexibility is so important.
Few people realise that once you have paid off any existing mortgage you may have on your home, the money that you release is yours to spend as you see fit.
The other crucial thing to remember at the moment is that all equity release plans, recommended by Age Partnership, come with a ‘no negative equity guarantee’.
Even with such uncertainty in the housing market, that means your estate will never owe more than the property is worth when it is sold.
- Free, instant equity release calculation
How does equity release work?
There are two types of equity release. Both provide a tax-free lump sum and allow you to stay in the home you love without having to make any repayments while you live there.
Most people choose a lifetime mortgage which releases a tax-free lump sum, currently at low rates of interest which can be fixed for life, through a loan secured against your property. The original loan amount, plus the interest accrued, is repaid when you move into long-term care or pass away.
The other option for the over 60s is a home reversion plan, which allows you to exchange the ownership of some or all of your home in return for a tax-free lump sum.
Equity release is a big decision and it won’t be right for everyone. That’s why it is so important – especially at times like these – to carefully talk it all over with an expert adviser.
That’s also why the initial consultation with an Age Partnership specialist adviser is free.
Your adviser can help you find out everything you need to know about unlocking money from your home. That includes the effect it can have on the amount of inheritance you leave when you’re gone and how it might affect your entitlement to means-test benefits now or in the future. You should request a personalised illustration to fully understand the features and the risks of equity release.
The specific plan and rate that you can secure will depend on your individual circumstances.
- Access tax-free cash from your home without having to move
You will only pay a fee for your advice if you decide to go ahead and your plan completes, would a
typical fee of 2.25% of the amount released be payable (minimum £1,695).
Equity release requires paying off any existing mortgage. Any money released, plus accrued interest, would be repaid upon death or moving into long-term care.
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