A study by the Financial Times in February 2022 found almost 30% of over 55 homeowners were planning to release equity from their main home as part of a retirement income.
If this is you, you might be wondering whether Equity Release will give you the flexibility you need later in life if you decide to move house.
Selling your house can still be an option, even if you have taken out an equity release plan on the property. Many schemes allow you to move your mortgage to a new property if you decide to sell – provided that the lender approves the new property.
If moving is something that you’re thinking about, perhaps to a house which is significantly cheaper than your existing property, the lender may decide it is not willing to lend as much against it.
You may need to pay back some of your loan early, in which case you’ll need to look at what early repayment charges there might be on your loan.
There are some properties, that equity release providers might not be able to accept – speaking with an adviser about your future plans will help them recommend a plan that is right for you.
It’s best to explore these questions with your Adviser before taking out an equity release mortgage. They will advise you accordingly.
Simply Later Life Planning are proud members of the Equity Release Council.
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