CONSIDERING YOUR OPTIONS
It's a big decision to make, so it's important you make the right choices when thinking about releasing money from your property.
Advantages of Lump Sum
Products are available from the age of 55
The cash you release is tax-free and can be spent as you wish
You continue to own your home, thereby benefiting from any future increase in its value
There is no requirement to make monthly repayments
The ‘no-negative-equity’ guarantee ensures that you can never pass on debt to your estate
Products can allow you to protect a percentage of your property value so that your family could inherit a part of the property value
No more monthly repayments for your mortgage as it is a condition that you pay off your mortgage with the money you release from your home
Things to Consider
The size of the lifetime mortgage will grow over time. This is because interest is added to the original loan amount and it continues to roll up as future interest is added on top of this
If you want to increase the amount of equity released beyond the original amount agreed, you would normally have to apply for a further advance, which would not be guaranteed
The amount that you will leave as an inheritance will be reduced
If you wish to pay off the equity release product early, you may have to pay an early repayment charge, these differ from product to product
In some cases the lump sum of money that you release could affect your entitlement to any means-tested benefits that you may receive now or in the future.
