MORTGAGES

Equity release

Buying another home (for holiday or investment) or a car or home improvements. It is now widely accepted that equity in the house can be put to good use for this. You may want to carefully consider the following before proceeding with an Equity Release:

If you gift some of the money to family, they might have to pay Inheritance Tax in the future.
Interest on a Lifetime Mortgage is calculated daily and added to the amount you owe each month. This means that the amount you owe will quickly increase over time, reducing the equity left in your home.
The inheritance you leave will be reduced.
If you pay back some of the loan early, you may be subject to an Early Repayment Charge.
Releasing equity may impact your entitlement to means tested state benefits.