There are various ways you can unlock some of the market value (or equity) in your property. For example, you could downsize to a smaller property or one of lower value - perhaps by moving to a different part of the UK where house prices are cheaper.
Downsizing will give you maximum value from your home, but there may be disadvantages such as the hassle, disruption, and cost of moving. You may also be very attached to the area where you currently live.
There are however solutions that allow you to stay just where you are.
Equity release plans are 1 option, that allows you to release much-needed cash from your home, whilst retaining the right to live in it for the rest of your life.
If you still have an outstanding mortgage on your property you must pay it off, either by using some of the proceeds from your plan or from other funds. Once that's done, the money you release can be spent as you wish. This could be on holidays, a new car, new conservatory or meet unexpected situations such as health care.
Most importantly, your equity can help you fund your retirement or provide reassurance that your spouse will have enough to live on when you die.
These schemes can be helpful in certain circumstances but are not suitable for everyone.
Retirement Interest Only (RIO) mortgage
With this type of mortgage, you only pay the interest on the amount you’ve taken out each month, meaning your monthly payments will be lower than a standard mortgage. And there's no fixed term: The amount you borrowed won't have to be paid back until the last remaining borrower moves into long-term care or dies.
Could it be right for you?
Unlike a regular mortgage, which runs for a fixed term, this mortgage is designed to run for the rest of your life, meaning it could be ideal if you don't want to move or downsize. It could be right for you, so long as you're happy knowing that the loan is usually repaid by the sale of your home when the last remaining borrower moves into long-term care or dies.
Typically, ages start from 55, up until your 85th birthday, so long as:
- you're getting either a state, workplace or private pension
- the property is, or will be, the main place you live
Please complete the contact us form and we will get back to you to discuss your individual situation and requirements.
EQUITY RELEASE SCHEMES WILL REDUCE THE VALUE OF YOUR ESTATE AND MAY AFFECT YOUR ENTITLEMENT TO STATE BENEFITS. TO UNDERSTAND THE FEATURES AND RISKS ASK FOR A PERSONALISED ILLUSTRATION FOR EQUITY RELEASE THERE WILL BE A FEE OF £995
DanJo & Co Financial Ltd is an Appointed Representative of PRIMIS Mortgage Network which is a trading name of Personal Touch Financial Services Limited. Personal Touch Financial Services Limited is authorized and regulated by the Financial Conduct Authority. Address: e-Innovation Centre, Priorslee, Telford, TF2 9FT, Telephone 01952 919210. Reg Number 11897233 Reg: in England and Wales
DanJo & Co Financial act as a credit broker not a lender for Buildings and contents insurance.
Some of the products/services shown above are not or may not be regulated by the Financial Conduct Authority