Are you thinking of taking out a lifetime mortgage?
Many homeowners over 55 are realising that they can unlock some of the value of their home to improve their retirement income. This can be done via an equity release plan.
There are various equity release plans available. One type of plan is a home reversion plan. This involves selling some or all of your home to the provider and in return the provider allows you to stay in your home for the duration of the plan. At the end of the plan the provider takes their share of the property.
A lifetime mortgage allows you to benefit from any recent increases in the value of your property, without having to move home. You may choose to use the money you release for home improvements, helping out your family or to subsidise your retirement income.
All plans allow you to stay in your home and many have no monthly repayments to make. Instead the loan is repaid at the end of the contract, usually when you die or go into long term care.
You should be aware that equity release products can alter your tax position and affect your eligibility for means tested benefits. They will also affect the amount your estate will receive on the eventual sale of your home.