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An equity release product allows you to unlock the value (cash) tied up in your home. Instead of leaving this cash tied up, more people are opting to release it, providing funds to support retirement dreams, pay off debts, or assist family members.
To access an equity release product, you must be over 55 and seek advice from a financial adviser. There are various products available that enable you to release money from your home, either as a lump sum or in smaller, regular amounts known as drawdown. At Mortgageable, we specialize in advising on lifetime mortgage products.
Representative Example: If you borrow £15,000 over 10 years. Initially, on a fixed rate for 5 years at 5.10% and for the remaining 5 years on the lender’s standard variable rate of 5.05%, you would make 60 monthly payments of £184.29 and 60 monthly payments of £185.99. The total amount of credit is £17495; the total repayable would be £22,216.80 (this includes a Lender fee of £995 and a broker fee of £1,500). The overall cost for comparison is 8.8% APRC representative.
Rates between 3.4% to 29.% APRC. Repayment terms between 3 and 30 years.
As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.
Think carefully before securing other debts against your home
If you are thinking of consolidating existing borrowing you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.