Equity Release York

The money you release from your home can be used in many different ways, giving you the freedom to decide what matters most to you in later life.

You may choose to make home improvements, help family members financially, repay an existing mortgage or put the money towards experiences you have been planning.

Some homeowners also use equity release to provide additional financial flexibility alongside their retirement income.

How you use the money is generally your choice, although paying off certain existing borrowing may form part of the conditions of your equity release plan.

If you choose a lifetime mortgage, you will remain the owner of your home while releasing some of the value built up in it.

You can normally continue living in the property for the rest of your life, provided you meet the conditions of your equity release plan.

This can offer reassurance if staying in familiar surroundings is important to you during later life.

As your mortgage broker in York, we will explain the exact terms of the plan so you understand your responsibilities as the homeowner.

Moving home may still be possible after taking out equity release, provided your new property meets the requirements of your provider.

With many lifetime mortgages, the plan can be transferred to a suitable new property rather than requiring you to remain in the same home.

If the new property is worth less, you may need to repay part of the amount owed as part of the move.

You can usually repay equity release early, although an early repayment charge may apply depending on your plan and when you choose to repay it.

Some equity release plans also provide greater flexibility by allowing you to make partial repayments without a charge, subject to the provider’s terms.

This can be useful if your circumstances change or you want to reduce the amount owed over time.

Taking out equity release will usually reduce the value of your estate, which could mean leaving a smaller inheritance to your family or other beneficiaries.

With a lifetime mortgage, interest can build up over time if you choose not to make repayments, increasing the total amount owed against your home.

Some equity release plans offer features that allow you to protect a portion of your property’s value for inheritance, subject to the terms of the plan.

If you are considering how equity release could affect your inheritance, tax or pension arrangements, it is important to  also speak with a suitably qualified tax or pension advisor.

You may still be able to take out equity release if you have an existing mortgage on your home.

Any outstanding mortgage will normally need to be repaid when your equity release plan completes, which can often be done using some of the money you release.

Any remaining funds can then be used as you choose, subject to the terms of your plan.

Our mortgage advisors can look at your existing mortgage alongside the equity available in your property to explain what options may be available.

You may be able to release equity more than once, depending on the type of equity release plan you choose and how much value remains available in your home.

Some plans provide a reserve that allows you to access additional money at a later date, rather than taking everything at the outset.

This can give you more flexibility in later life and may help limit the amount of interest building up, as interest is usually only charged on money once it has been released.

Many equity release plans allow you to make voluntary repayments towards the interest or amount borrowed, although the options available will depend on the provider and plan.

Making repayments can help reduce the amount of interest that builds up and leave more of your property’s value remaining over time.

You can often choose whether to make repayments rather than being committed to a regular monthly payment.

Whether equity release is suitable for you will depend on your circumstances, your property and what you want the money for.

There may be different ways to access funds in later life, so it is worth understanding the benefits, costs and longer-term effects before choosing a plan.

Our equity release advisors in York can look at the equity release options available and explain how each one could work based on your circumstances.

This gives you a clearer picture of what is available before deciding whether you want to proceed.