Your Guide to Later Life Finance

Benefits and drawbacks of equity release

Watch our video to learn more about the benefits and drawbacks.

Benefits

Drawbacks

You can unlock cash from your home, tax-free, to help meet your needs in later life You’ll always retain full ownership of your home with a lifetime mortgage recommended by us You can choose to make reduced or no monthly repayments with a standard lifetime mortgage to suit your circumstances

A lifetime mortgage is a loan secured against your home and subject to compound interest, meaning the amount you owe can grow quickly Equity release will reduce the value of your estate and may affect your entitlement to means- tested benefits Equity release may leave you with limited or no property equity remaining

You’ll never owe more than your home’s worth or pass on any equity release related debt to your family with a lifetime mortgage recommended by us You may be able to remortgage your plan in the future to release further funds or secure a better interest rate, although this isn’t guaranteed and may be subject to early repayment charges

Equity release will reduce your financial options in the future A lifetime mortgage is a long-term financial product and is not designed to be fully repaid until the death or entry into long-term care of the last remaining borrower, otherwise early repayment charges may apply

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