Equity Release Explained:Full Guide For 2023
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Equity Release Products
Updated October 2023- Author Paul Murphy
Whether you are looking to raise equity release as a lump sum or a drawdown lifetime mortgage, Later Life Finance have access to the best equity release companies and schemes available and provide expert, independent advice on all your options.
We review the most popular type of plan, the lifetime mortgage, and explain how flexible these modern schemes are for homeowners considering releasing equity from your home.
If you are considering releasing equity you may be interested in the 4 little known truths about equity release, the myths and pitfalls to avoid.
When you are considering how equity release works and whether it’s the best choice for you, we provide advice and guidance on all your options.
Lifetime Mortgages (also known as Equity Release) are becoming increasing popular as a way to release cash from the home. When considering what the requirements are for lifetime mortgages, and the age criteria, Later Life Finance are experts in sourcing the best plan for your needs.
Nearly 50,000 homeowners took out new plans, up 20% on 2021, with all new plans since 28 March 2022 guaranteeing customers the right to make voluntary penalty-free partial repayments to reduce interest costs*
How much equity you can release from your home is based on a number of factors including your age and home value.
Cash Lump Sum
Pay Off your Mortgage
Drawdown Lifetime Mortgages
A drawdown lifetime mortgage is popular where the money is not required in a full lump sum from the outset. For example, you can take smaller amounts as and when required. This also has the benefit of reducing the interest effect as you are only charged interest on the funds borrowed. The reserve facility is charged at the interest rate applied at the time of further borrowing. There are typically no fees to access the reserve facility.
Lump Sum Lifetime Mortgages
A lump sum plan will incur interest on the full sum from the outset, whereas a drawdown plan only incurs interest on each lump sum as they are drawn, helping to reduce the interest costs, which can help reduce the impact of interest on your estate when compared with a one off lump sum plan.
Although compound interest applies to lifetime mortgages, lenders allow voluntary repayments to be made to avoid interest compounding.
Later Life Finance have over 15 years Mortgage expertise and are experts in the Later Life mortgage industry.
We provide an independent Later Life Mortgage comparison service to compare all your Mortgage options.
We work on a whole of market, independent basis and consider all available mortgage providers, interest rates and schemes to identify the best solution for our valued clients.
Whether you wish to extend your mortgage term, gift cash to loved ones or raise money to live the retirement you deserve, the Later Life Experts will help you understand all your options and can even arrange the plans for you.
At Later Life Finance our advisers have years of experience in helping homeowners successfully release Equity from their homes. We offer a FREE NO OBLIGATION initial telephone appointment with a qualified Equity Release adviser, where you can discuss your circumstances and find out if an Equity Release Mortgage is right for you.
Book your free appointment today and use our free equity release calculator.