Equity Release
Equity release is a special type of mortgage that lets you access the money tied up in the value of your home and RBS Associates will continue to provide advice for clients wishing to investigate Equity Release mortgages.
Equity release is becoming far more commonly used these days, and modern schemes are much more flexible than they were in the past.
If you are a homeowner aged 55 and over, although more commonly 60 and over, equity release may allow you to borrow money from your home without selling it. It can even be used to help you purchase a home in retirement.
You can take an equity release as
- AA lump sum (most lenders say a minimum of £10,000)
- BSmaller amounts, taken when you need them or as a regular income - called a ‘drawdown’
- CA combination of both
Everybody’s circumstances are different and normally, we would consider other options before an equity release mortgage, such as downsizing or using other assets, e.g. savings and investments to meet our client’s needs, primarily because usually with equity release, interest is added to the amount borrowed.
In short, for equity release, it’s important we fully understand a client’s circumstances and requirements and whilst equity release often carries a poor reputation because of the type of products that were available 30 years or so ago, it is now an important consideration when financial planning is undertaken in retirement.