Equity Release - Is It Right for Me?

Published by Sophie Fillmore on 2020 04 16

Equity Release - Is It Right for Me?

Equity Release – Is it Right for Me?

In challenging and uncertain times, specialist financial advice is key. Our role as Advisers is to support our clients and come up with solutions that may have previously been discounted or not considered necessary until now.

There will be many people during this time who wish to raise funds to support their children or grandchildren, or even to protect their own retirements if their pension funds have been affected by the volatile financial markets.

As we know, when markets have fallen so low, accessing capital from investments is unwise unless absolutely necessary. If possible, it is best to allow funds to recover over time, which means other options may need to be considered.

For clients in later life, releasing equity from their home by way of a lifetime mortgage may be a more stable way of securing capital to be passed onto those family members who need it most.

What is a Lifetime Mortgage?

A lifetime mortgage is the most popular form of equity release. It allows homeowners aged 55 and over to release tax-free cash tied up in their home. You can do it in two ways, either as a single lump sum or, following an initial release, in smaller amounts known as drawdown.

Lifetime mortgage key points:

  • - Available to homeowners aged 55 and over
  • - Allows you to release tax-free cash tied up in your home
  • - You retain full ownership of your property
  • - Rates available from 2.79% fixed for life
  • - There are no monthly repayments
  • - Optional payment facilities that allow you to cover some or all of the interest should you wish to
  • - It is typically repaid when you pass away or move into long term care

The amount of cash you can release depends on things such as your age, health and the value of your home. As with any mortgage, what remains from the sale of your property after your plan has come to an end can be passed on as an inheritance. We only recommend plans that meet the Equity Release Council standards, which come with the no negative equity guarantee. That means you’ll never owe more than your home’s worth, so you can’t pass on any debt accrued through equity release to your loved ones.

It is imperative that advice is taken from a qualified equity release adviser if you are considering taking out a lifetime mortgage product. You can speak to one of our specialist advisers at KDW to discuss your needs and determine whether this may be a product suitable for your circumstances.

Call us for more information on 01727 85 22 99 or email us on help@kdw.co.uk.



Equity release may involve a lifetime mortgage or home reversion plan. To understand the features and risks please ask for a personalised illustration. Your home may be repossessed if you do not keep up repayments on your mortgage.

KDW is a trading style of K D Wright Financial Services Ltd which is authorised and regulated by the Financial Conduct Authority. Registration No: 509886. Registered Address: Radius House, 51 Clarendon Road, Watford, WD17 1HP.