5 FAQs about Equity Release

For most people, your home is your most valuable asset. It can seem like a goldmine, if you’re living in a house you bought 30 to 40 years ago. So, equity release mortgages can be useful.

If you are considering releasing equity from your home, no doubt you would have plenty of questions. 

This article answers most of the important and frequently asked questions for you: from how it might affect your home ownership or the inheritance you leave behind, to whether or not you can change your equity plans in future.

 Do you still own your house with equity release?

Yes! If you take out a lifetime mortgage you will remain the owner of your home. The deeds remain in your name and you also have the right to remain in your property for as long as you live.

Can you pay back the equity release early? 

An equity release plan is intended to last for the rest of your life; however, there are ways in which you can repay the plan back early if you choose. If you have taken out a lifetime mortgage and wish to repay earlier than planned, you will have to pay off the full amount, including the loan and interest accumulated. There may be an early repayment charge too, so you should check this and seek professional advice before you proceed with any type of plan.

Can I still take out an equity release plan if I have an outstanding mortgage?

Yes. Equity release providers allow you to release cash from your home if you have an outstanding mortgage on your property, however, all providers would expect you to use the cash you release or other savings you may have to pay off the outstanding mortgage owed on completion.

Can I change my equity release plan?

If you have already taken out an equity release plan, then you may be eligible to change to a more competitive option. You may even be able to release more cash if your home has increased in value. You can take the help of an expert to understand whether this is the right decision for you.

How will releasing equity affect my family?

It is highly recommended that the entire family is involved in the equity release process, to ensure all parties understand what is involved. Many equity release customers consider using a lifetime mortgage to help put their legacy into action now and give an early inheritance, allowing them to help loved ones when they might need it most.

Releasing equity from your home is a major decision and definitely a difficult one!

You might still have questions you would like ironed out. 

If so, or if you need help in equity release, then you can get in contact with us.

Mail us @enquiry@capmobfinance.com