Equity release is on the up: Why is it becoming so popular?

The latest figures show equity release is booming in popularity. It’s ideal to explore if you own your property and need some extra cash to fund your ambitions.

Retirement, pensions and ambitions

The truth is, for many people their retirement income is not enough to pay for the extras. Taking a sensible amount out of your home, while taking care to leave enough to loved ones, is becoming an increasingly popular move.
You don’t have to sell your home, downsize or even give up any ownership to get money out of your home. People releasing equity are able to stay in the place they call home, while enjoying the extra cash.


Why are more people releasing equity each year?

Everyone has their own reasons, but it essentially comes down to wanting a more comfortable, enjoyable lifestyle:
To pay for home and garden improvements.

To help their loved ones financially at a time when they can put it into good use, e.g. weddings, businesses, education, property.

To help clear their existing mortgage and bills, freeing up monthly payments.

To pay for the things their retirement income won’t, such as holidays, hobbies, cars and other treats.


Are there any downsides?

There are always things to consider when it comes to money. Equity release is no different.

It could affect your entitlement to means-tested benefits, and by taking out money now, there will also be less to leave in your estate.

Historically, property prices have risen in the long-term, which could replenish some of the equity taken out today. There is no guarantee of that, but should house prices continue increasing then the impact of interest on the amount released can be lessened.

When releasing equity with Reader’s Digest Equity Release, one of our fully qualified equity release advisers will be able to talk you through all of the features and risks.


How it works

Homeowners aged 55 and over can receive a tax-free lump sum from their home to spend as they wish.
Rather than making monthly repayments, the interest is added to the amount owed monthly. Repayment is not due until the homeowner dies or enters permanent long-term care, at which point it will usually be achieved with the sale of the home.

There’s also an option to create an interest-free reserve that can be accessed at a later date. Interest will only be added on this reserve when money is drawn down from it - a handy way to control the impact of interest.

Whether you're curious as to how much you can release, or you want to take the initial steps towards releasing equity, our handy equity release calculator will give you the information you require.

You can also contact us on 0800 029 1233 to discuss your needs with a view to arranging a no-obligation appointment with one of our fully qualified equity release advisers.

By meeting with an adviser, you could benefit from our carefully selected range of products that they will compare for you. With flexible features prioritised throughout, we’ve designed this selection of products to offer great value for you and your family, both now and in the future. All products recommended will come from lenders who are members of the Equity Release Council. This will mean that they carry some inbuilt guarantees such as maintaining full ownership of your property, and never owing more than the value of your home.  

A Lifetime Mortgage may impact the value of your estate and could affect your entitlement to means-tested benefits. Think carefully before securing other debts against your home. To understand the features and risks ask for a personalised illustration. Reader's Digest Equity Release is a trading style of Responsible Life Limited. Responsible Life Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register (https://register.fca.org.uk/) under reference 610205. Only if you choose to proceed and your case completes will Responsible Life Limited charge an advice fee, currently not exceeding £1,690. Our adviser will talk through the setting up costs of a Lifetime Mortgage before you make any decision to proceed.

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