If you own a home, there are several different ways to gain access to your home equity. If you want to borrow against the value of your home, you might want to consider an equity release program. People who participate in equity release programs receive either a single large payout or monthly payments.
One of the main factors lenders use to determine the amount of equity to release is your age. People who are sixty years old or older seek equity release plans more than any other segment of the population. In general, the older you are, the higher the percentage that equity lenders are willing to release. There is no age requirement for an equity release, but if you’re of a younger age, you might want to consider another option.
Equity release can be a tricky financing option. It’s important to educate yourself about the process before you make the decision to release the equity in your home. For instance, it’s important to find a plan that offers a negative equity release. This helps to protect you from having to pay off more debt than you need to if your property decreases in value. This also protects your next of kin from having to pay any outstanding debt on your home.
People sign up for equity release plans for a number of different reasons. No matter if you’re cashing in the equity in your home to pay for medical expenses, or you just want to cover cost of living expenses, it’s a good idea to check with a financial advisor to make sure this plan makes sense for you. You may even want to speak with a lawyer to make sure you don’t get charged excessive hidden fees, or lose the ownership of your home prematurely.
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