Are equity release schemes a good idea? | What are the best equity release schemes?

Equity release mortgages: your questions answered!

Equity release is a booming market. You can take the money you release as a lump sum or, in several smaller amounts, or as a combination of both. Here, we answer some of your frequently asked questions around equity release.

It may sound simple once it’s explained but there are still a lot of questions that we repeatedly encounter around equity release. At Acumen, we are here to offer you advice on equity release, so that you can decide which option or product is right for you. Releasing equity from your house means that you can:

  • Stay in your own home
  • Be independent to make the most of retirement
  • Release a cash sum that could make a big difference to your retirement

How does equity release work?

There are two main ways to release equity from your home:

1. Lifetime Mortgage – With this type of equity release scheme you don’t need to make any repayments over the lifetime of the loan. Instead, the interest is gradually added until the final repayment is either:

  • At the end of your life or
  • If you move into long-term care

You’ll be able to keep your home and also benefit from any future house price growth if your house goes up in value.

2. Home Reversion Plan – With this type of equity release scheme, someone else buys a share of your property. When your home is sold, they get a share of the sale proceeds. You’ll continue to own your share of the property to pass on to your family but you won’t be able change your mind and go back on your decision. You won’t benefit from any future house price growth if your house goes up in value.

Are equity release schemes a good idea?

Equity release is a commitment you make for life, so it needs to be thought through very carefully. At Acumen, we would always advise you to consider all the alternative options before deciding if equity release is a good idea.

Other options might include:

Making sure that you’re already claiming all the benefits and grants that you’re entitled to – Equity release can affect some state benefits so you’ll need to talk this through with whoever is advising you.

Moving to a smaller property to release funds – Lots of people ‘downsize’ to a smaller property when their children leave home.

Asking your family for financial help – In some cases, you might be well advised to ask your family for financial help if they are supportive and have the equity to help you.

What are the best equity release schemes in the UK?

At Acumen, we are fully aware that this trend is going to continue, which is why we make sure that our up to the minute advice around products is combined with protecting you as the consumer to offer you the best possible equity release options.

Whatever your motivation or reason to release equity – from freeing up the capital locked in your home to increase your income, maintaining your standard of living, or passing on wealth to your children, talk to one of our dedicated Acumen team members about equity release today.

Contact us on 0151 520 4353 or email info@acumenfinancial.co.uk.

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