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Equity release can free up some of the value stored in your home and turn it into cash. This can be received as a tax-free lump sum, or as smaller payments over time.
Your equity release eligibility will depend on several factors, such as your age and the value of your home. If you’re over 55, then an equity release mortgage could help you unlock some of the money in your property.
However, you will need to pay the cash sum back eventually, usually with interest.
People release equity in their home for different reasons. Equity release enables you to release money from your home without worrying about monthly repayments. You could use the money to pay off debts, make home improvements, help a family member to buy their first home or go on holiday.
One way of releasing equity involves taking out a lifetime mortgage. You can release a percentage of your home’s value as cash. You won’t have to move and you’ll continue to own your home. The amount you borrow is usually paid back when your house is sold following the death or move into long-term care of the last remaining borrower.
You can take the money as a tax-free lump sum or smaller amounts over time and use this to help fund your retirement, or gift to family.
If you’re wondering if a lifetime mortgage could help you, it’s important to be mindful of the features and considerations. Some examples of these are detailed below but your adviser will always discuss your needs and circumstances to decide if a lifetime mortgage is right for you.
Equity release eligibility depends on several factors. These can include:
Find out if you can apply for a Scottish Widows Bank Lifetime Mortgage by using our Lifetime Mortgage Checker.
If you qualify, we will arrange for you to talk to an expert Scottish Widows Bank Later Life Lending Adviser at a time that suits you.
Or, you can call us on 0345 122 1607. Our lines are open Monday to Friday 8am – 8pm, Saturday 9am – 4pm. We’re closed on Sundays and Bank Holidays.
Equity release works by releasing the equity in your home as a cash lump sum. The money borrowed and interest is usually repaid from the sale of your home when you, or the last borrower, pass away or go into long-term care.
Yes, you can be turned down for equity release. You or your home may not meet the criteria for a successful application however, your adviser will be able to look at that when assessing your options.
Not always. The majority of lifetime mortgages do have an interest rate which is fixed for life however, there are some variable interest rates available which come with a cap to ensure that the rate will never go over a certain percentage.
Start by inputting your information into our Lifetime Mortgage Checker.
Releasing equity can be a good idea and help you meet your needs however, it is completely dependent on your own individual circumstances and you should ensure you understand any implications as well.