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Equity ReleaseEquity Release is available to homeowners aged 55 and over who could benefit from an additional lump sum of money or a more gradual injection of funds over time.
Because the money raised using Equity Release belongs to you in the first place, you’re simply releasing it. The cash you receive is tax-free and can be spent on whatever you like. However, if you have a mortgage secured against the property, some of the money you release must be used to pay off any outstanding mortgage debt.
Equity in your home is the difference between the value of your property and the balance of any debt secured on your property, such as a mortgage. Equity release is a term for a range of financial products designed to help you turn the equity you have in your property into money you can use.
For Equity Release, Coombes & Wright Mortgage Solutions act as introducers only.
Who is Equity Release for?
The most popular form of equity release is a Lifetime Mortgage. With this option there are no regular monthly repayments and you continue to own 100% of your home.
Here are some popular examples of how equity release could help you:
- Funding improvements to your home
- Clearing your Interest-Only mortgage
- Making a one-off purchase, such as a car, caravan or holiday
- Helping family members
Although equity release is often associated with older people wishing to swap equity in their property for a more significant income in retirement, it can be used for several purposes. For instance, home refurbishments, purchasing a new property, or consolidating other debts at a more attractive interest rate. Equity release can be a very cost-effective way of borrowing money, but since the money borrowed is, ultimately, borrowed against your home, it needs to be used with appropriate care.
Watch our handy video to explain Equity Release
Equity Release to fund retirement
If you aim to use equity release to fund your retirement, there are two ways to go about it. One is to remortgage in the usual way and then use the funds to generate an income with which you can repay the mortgage on your home and also make a profit, which you can then put to further use. The other is to use a specialist service for older people, which essentially buys the home from you but allows you to continue living in it. Each approach has its benefits and risks; both should be approached with particular care and professional advice.
Equity Release for other purposes
If you aim to use equity release for another purpose, you will essentially be in a standard remortgaging situation. However, this is still a significant move, and its advantages and disadvantages should ideally be considered with the help of a professional.
Next Steps for Equity Release
At this stage, we work on a referral-only basis. Equity Release refers to home reversion plans and lifetime mortgages. To understand the features and risks, ask for a personalised illustration.
Important Information
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Our CWMS Team
Coombes & Wright Mortgage Solutions is an award-winning mortgage & protection broker providing local, flexible, friendly advice. We have offices in Brookmans Park, Hatfield, as well as in Abbots Langley, Cheshunt and St Albans Hertfordshire, London, Dover and Canterbury in Kent.
Our team has over 180 years of combined property and mortgage industry experience. Jointly, we have helped and advised thousands of people at all levels of the property ladder. We pride ourselves on personalised service, exceptional customer care and a friendly approach.
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