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Melanie Wright
GROWING NUMBERS OF OLDER BORROWERS UNLOCKING PROPERTY WEALTH
Susan, 76 and Ian, 65 were initially uncertain about the idea of equity release but recognised that it could provide the financial flexibility they desired for their retirement years. “After researching various options online, we decided to contact Age Partnership to explore this possibility further.” “We didn’t really consider other alternatives to equity release as we already downsized our home during the Covid pandemic, but we had several reservations, including concerns about the cost of equity release, leaving an inheritance for our family, and the thought of not fully owning our home after years of hard work.” ‘Equity release has enabled us to embrace our retirement with confidence’ “However, these concerns were alleviated after speaking with our advisor and we decided to move forward with equity release to help cover necessary expenses, such as a new boiler, which will help reduce the financial burden of emergency repairs.” “We have also purchased a campervan and are looking forward to embarking on plenty of travel adventures, knowing our essential needs are covered.” “Equity release has enabled us to embrace our retirement with confidence and it means, for us at least, everyday can be an adventure.”
Find out more about unlocking tax-free cash from your home DISCOVER IF EQUITY RELEASE IS RIGHT FOR YOU
Mortgage lending to borrowers aged 55 and above rose by 28% in the final three months of last year, according to UK Finance, with the value of this lending at £5.6 billion up nearly 40% compared to the same period the previous year. Of this lending, 5,700 new lifetime mortgages were advanced between September and December 2024, the trade body said, up 6.7% year on year. A lifetime mortgage is a type of equity release scheme which allows you to unlock some of the value of your property whilst you continue to live in it. The main difference between a lifetime mortgage and a standard mortgage that monthly payments are not required. The mortgage only must be repaid upon the death of the last remaining borrower or when they move into long term care. As no monthly payments are made, the interest charged rolls over the lifetime of the mortgage, meaning the amount borrowers owe at the end of the mortgage will be considerably more than the amount they borrowed. However, many lenders will allow borrowers to make full or partial interest payments either on a monthly or ad-hoc basis so they can keep their borrowing costs down. David Burrowes, chair of the Equity Release Council, said: “As consumer demand stabilises, the industry will continue to support older homeowners ‘needs through product innovation and flexibility. The
average loan sizes of initial drawdowns have grown by 8%, with customers making use of reserve facilities to manage borrowing efficiently over time. This demonstrates the versatility of equity release in addressing diverse financial goals, from home improvements to supplementing retirement income.”
Rising living costs could see later life borrowing increase further.
spending once you’ve repaid any existing mortgage, which is a condition of equity release. You could make home renovations, enjoy a holiday or supplement your finances to enjoy a
how much you may be able to release.
about releasing equity, including the effect on the amount of inheritance you can leave and if your entitlement to means-tested benefits could be affected now or in the future.
If you are approaching or already enjoying your retirement, you might be considering how you will finance your plans for your golden years. Each year, thousands of homeowners aged 55 and over decide to release the equity that’s built up in their homes to achieve their goals or explore a more enjoyable lifestyle. How much could you access? Equity release lets you access a portion of the value locked in your home as tax-free cash while continuing to live in the place you love. According to Nationwide, UK house prices have risen by over 40% in the past ten years alone. So, if you’ve owned your home for several years, its value has likely increased. Depending on factors such as the age of the youngest homeowner, your property value and needs for the money, you could release from a minimum of £10,000 up to 60% of the value of your home. An adviser can help you discover exactly how much you may be able to release. You can choose to access the money either as a lump sum or smaller amounts over time. The money you unlock is yours to enjoy
repayment charges may apply above a set value. Get expert advice Radio Times is pleased to be working with Age Partnership+, their advisers can help you consider your options, discuss alternatives with you, such as downsizing, and tell you everything you need to know
Lorna Shah, Managing Director, Retail Retirement at Legal & General said "Many retirees are not able to maintain the lifestyle they want with their existing pension pots alone. This will only become a greater challenge as people live longer and have to meet increased costs, such as those associated with residential care. Property wealth, using products like equity release, could increasingly be integrated into retirement planning in the future, as a larger number of homeowners turn to the value held in their bricks and mortar to bolster their retirement funds.” If you’re considering equity release, you must seek professional financial advice first, as there are several downsides to consider. These include the fact that unlocking some of your property wealth will reduce the value of any inheritance you might have planned to leave, and it could also affect your entitlement to any means-tested benefits you might be claiming.
Your quotation is free, and you are under no obligation to proceed. Only if you choose to proceed and your case completes would an advice fee of £1,995 be payable. Other lender and solicitor fees may apply.
better lifestyle. Plan features
They will also provide you with a personalised illustration so you can find out
Equity release requires paying off any existing mortgage. Advice is required before proceeding, as equity release can be quite complex and there are a few different plan options to consider. With a lifetime mortgage, the most popular type of plan, you maintain 100% home ownership and the money you borrow is secured against your home. An alternative is a home reversion plan, which involves selling all or part of your home to the reversion company or provider. With both types of plan, you can continue living in your home, but the value of your estate will be reduced along with your ability to fund long-term care. There are no requirements for regular repayments if you don’t wish, as the equity released, plus accrued interest, is repaid when you die or move into long-term care. However, with some plans, you can choose to make repayments, which can reduce the amount of interest that rolls up over time. These may be subject to certain limits, and early
WHY CHOOSE EQUITY RELEASE THROUGH RADIO TIMES?
Access a lump sum of tax-free cash Stay in the home you love No monthly repayments required Appointments available over the phone, via video call or in some cases, in the comfort of your own home
Click here to request your free guide , or to find out more information call free on 0800 433 4279 Information correct at time of going to print. The Radio Times Equity Release Service is provided by Age Partnership Limited. Radio Times is a trading name of Immediate Media Company London Limited which is an Introducer Appointed Representative of Age Partnership Limited, 2200 Century Way, Thorpe Park, Leeds, LS15 8ZB. Company registered in England and Wales No. 5265969. VAT registration number 162 9355 92. Age Partnership Limited is authorised and regulated by the Financial Conduct Authority, FCA registered number 425432 and is trading as Age Partnership Plus.
June 2025
June 2025
RadioTimes
RadioTimes
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