If you’re over the age of 55 and looking to free up cash from your property to fund home improvements, help out family/friends or clear outstanding debts you might be looking at equity release.
Last year, homeowners withdrew over £3bn through equity release products, according to data from the advisers Key Retirement. Sales of equity release plans increased by over 40 percent in 2017, compared to the previous year.
However, you may be wondering whether equity release is a safe option for you.
Anyone considering sourcing wealth from their property can rest assured that equity release is fully regulated by the Financial Conduct Authority.
But, if you release equity from your home, you may not be able to rely on your property wealth later in life.
Customers also need to think about the interest on products like a lifetime mortgage, which can snowball over time, as it rolls up in a compound fashion. If your property is a significant portion of your estate, this may reduce or wipe out the amount of money you can pass on to your heirs.
We always advise speaking to an expert before making any decisions.