Ask the expert: Could I benefit from new equity release plans?
IN April 2024, there was some good news for people looking to release equity from their homes.
The main lenders in this area are now open to lending more money to those who qualify, which is a change from how things have been since October 2022.
Below, we hear from Andy Morris, Senior Equity Release Advisor at Age Partnership, to find out more and what this could mean for you.
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What could recent changes mean for me?
“Some leading equity release lenders are now willing to help equity release customers unlock a higher percentage of their property value than in recent years.
In February 2024 this was up to 52.02%, whereas in May 2024 this is up to 53.61%.”
“So, if you have looked at equity release recently, it might be worth revisiting your quotation as things may be better than previously.”
“The amount and percentage you can unlock will depend on the age of the youngest homeowner and the value of your property.
“Generally speaking, the older you are, the more they are willing to lend.”
“Whilst this is still the case with the recent plan changes, the amount homeowners can borrow has seen the biggest percentage increase across homeowners aged 55 to 60, when compared to February 2024.”
“This means homeowners aged 55 to 60 could benefit the most from these changes.”
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Could equity release be right for me?
If you’re a homeowner aged 55 or over and want to make the most of your retirement years, either by achieving your goals or supplementing your finances, equity release could help.
As long as any existing mortgage is first repaid, which is a condition of equity release, the money is then yours to enjoy, whether that’s supplementing your daily finances, or enjoying a long-haul holiday.
Advice is required before releasing equity, and your advisor will help you consider your options and talk you through everything you need to know.
It could be that downsizing could be a better way to raise the funds you need for example.
They will also explain the potential risks and impact it will have on your entitlement to means-tested benefits now or in the future.
It’s good to know
Equity release may involve either a home reversion plan or a lifetime mortgage, which is secured against your property and will reduce the value of your estate and impact funding long-term care. Any money released, plus accrued interest would be repaid upon death, or moving into long-term care.
Through Age Partnership, initial advice is provided for free and without obligation.
Only if your case completes would an advice fee of £1,895 be payable. Other lender and solicitor fees may apply.
Age Partnership is a trading name of Age Partnership Limited, which is authorised and regulated by the Financial Conduct Authority. FCA registered number 425432. Company registered in England and Wales No. 5265969. VAT registration number 162 9355 92. Registered address, 2200 Century Way, Thorpe Park, Leeds, LS15 8ZB.