A lifetime mortgage, the most popular type of equity release plan, allows homeowners aged 55-95 to unlock some of the value tied up in their homes, tax-free.
If you’ve owned your home for a number of years, it’s likely to be worth more than you paid for it. According to Nationwide, average house prices have risen from £66,366 in 1998 to £216,103 in 2018, more than tripling in the last 20 years.
It’s not surprising then to see that an increasing number of over 55’s are looking to their homes as a way of boosting their retirement finances. Your house is likely to have been one of your biggest investments and can be seen as much a part of the wealth you’ve built up over the years as a pension or savings.
You’ve worked hard all your life and made regular mortgage payments and now you’re sitting on a valuable asset. The key is to find a way to access this wealth that you’ve built up.
Many plan to downsize to a smaller property, but with a lifetime mortgage you can stay in the home you love and unlock that cash tax-free.