As the value of your home increases, money gets tied to it. An equity release is a way to access those funds. To access your funds, at least you should be at the age of 55 and above. The money can be released to the homeowner in a form of installments or a lump sum.
Taking out an equity release mortgage is one of the easy ways for you to meet your personal needs such as renovating your homes, use it in retirement, family emergency plan, or just to simply live comfortably.
To calculate your equity, it's the market value of your property, subtract any left mortgages or debts secured against it. Also continuously making your mortgage payments will help your equity to increase.
Property prices keep increasing in the UK. If you bought your home years ago, you are at an advantage of getting yourself a good amount on your equity. A quick example could be, If your home is worth £250,000 and you have an outstanding mortgage of £50,000, you would have £200,000 equity. However, to calculate the exact amount of equity that you can release will depend on your circumstances and your age.
For the process of an equity release plan to kickstart, firstly you need to qualify by being a UK homeowner, and be the age of 55 and above. Taking out this plan tends to vary from one person to another and also from mortgage provider to another.
It takes about 8-12 for everything to be processed and getting your equity released.
Ensure you use the equity in a responsible way or even as an investment such as improving your home through home renovation so you could live comfortably. Speak to an advisor today and get a quote from UK leading mortgage experts.