Unlock financial freedom with a Lifetime Mortgage, the most popular equity release option! This loan is secured against your home, and, unlike traditional mortgages, repayment is typically deferred until you pass away or move into permanent residential care. For additional information and expert guidance, contact Mor-Invest today!
Unlock cash from your home with a Home Reversion Plan! Sell part (or all) of your property while continuing to live in it. The reversion company receives a share of the proceeds when your home is sold, typically after you pass away or move into permanent care. Note that the payout may be below market rate, potentially reducing your estate if you pass away shortly after taking out the plan. Discover the benefits and considerations of a Home Reversion Plan today!
No, the money you receive is currently tax-free.
To release equity, you must be 55 or over (or over 50 for our Payment Term Lifetime Mortgage). As equity release involves taking out a loan secured against your home, you usually need to be living in it or in the process of buying it. Different lenders will apply other conditions too. They’ll probably look at:
The size of your mortgage
The value of your home
Whether it’s a house, a flat, or just a studio or bedsit
What sort of condition it’s in.
Some types of property, like homes with private water supplies, with thatched roofs, with more than 15 acres of grounds or with livestock, may be more difficult to release equity against.
Yes – if you take out a lifetime mortgage, a type of equity release, you can pay back some or all of it early. But lifetime mortgages are long-term products, so that’s usually not the best option. You’ll probably have to pay an early repayment charge (ERC), which can be very high.
You can avoid paying an ERC under certain circumstances. For example, if you’re moving house, your lender might let you transfer your lifetime mortgage to your new home without paying one. Or you might be able to set up optional partial repayments in advance and make payments within that limit.
Our adviser will talk you through your repayment options when you’re setting up your loan.
Yes, you can release equity from your home if you have a residential mortgage. But you’ll have to pay off your existing mortgage and any early repayment charges with the money you release.
Yes, you can release equity to pay off debt – in fact, it’s a very common use for it. You can pay off anything from a previous mortgage or a car loan to a credit card or a loved one’s debt. Your adviser will help you check your options, and make sure that equity release is the most cost-efficient one. You can learn more in our article 'How to consolidate debt'.
Equity release can affect inheritance tax.
If you're considering equity release and plan to gift funds to a family member or friend, it's important to note potential inheritance tax liabilities. Should you (or the last surviving borrower) pass away within seven years of making the gift, there may be a tax liability. The amount owed depends on how long it's been since the gift was made and the size of your estate. Find out more at: gov.uk/inheritance-tax.
