Equity Release Mortgages
If you’re 55 or older, you might be thinking about your retirement options, or you may have already retired. Equity release could help you use some of the value you’ve built up in your home to put your retirement plans into action.
What is equity release?
Equity release is a way of taking some of the value in your home back as tax-free cash by taking out a loan on your home. You can choose to take your cash either as a lump sum or in regular payments.
Homeowners choose to release equity for a wide range of reasons, such as to help with their retirement plans, pay off an existing mortgage, make home improvements or to raise some cash to give as a gift to family or friends. The amount of equity you can release usually depends on the value of your home and the age of the people named on the mortgage.
How can Halifax help?
If you’d like to discuss equity release, we can put you in touch with Scottish Widows Bank. They offer a Lifetime Mortgage, which is a type of equity release that could help you to unlock some of the value from your home.
A Scottish Widows Bank Later Life Lending Adviser will explain your options and help you to decide if equity release is the right choice for you.
How does the Scottish Widows Bank Lifetime Mortgage work?
- It helps you to release equity from your home as a tax-free lump sum with the ability to hold back some of the cash until you need it.
- You keep full ownership of your home and there are no monthly repayments.
- Interest is charged on the loan, which is then repaid when everyone named on the mortgage has passed away or moved out of your home permanently.
- If the mortgage is in joint names, the other person named on the mortgage can keep living in the property after you pass away or move into long-term care.
Are you eligible for a Scottish Widows Lifetime Mortgage?
You may be if:
- all applicants are aged between 55-85
- you are applying for a single or joint application
- the lifetime mortgage is for your main residence
- the property is in England, Scotland or Wales
- you already own the property
- the property is Freehold.
Some important things to consider
Scottish Widows Bank Lifetime Mortgages come with safeguards to protect you but there are still risks that you should consider. For example, as you won’t be making regular payments, the equity in your property will be reduced over time.
Both the amount borrowed and the interest need to be repaid from the sale of your property when everyone named on the mortgage has passed away or moved out of the property permanently.
Your Scottish Widows Bank Later Life Lending Adviser will explain the risks and all your options, and will help you to decide if equity release is right for you.