3 Tips To Find Out If You Have An Equity Release

You can release equity on the home you own with a home revision scheme or a lifetime mortgage.

The lifetime mortgage is the more popular type of equity release. It is a loan acquired against your home that allows you to maintain complete ownership of your home.

Getting money off your home through equity release is an excellent idea. The question to ask yourself, however, is whether you have an equity release.

Here are 3 tips to find out if you have an equity release:

1. The Value Of Your Home, Your Age, And Interest Rates

The amount of equity you can release depends majorly on how much your home is worth. If your home is worth at least £70,000, you can use an online equity release calculator and get an estimate of how much equity you could release on it. Bear in mind that you should be 55 years of age and above to qualify for equity release.

The more advanced you are in age coupled with a high-value home means that you’ll be able to release more equity.

It is also important to know that there is an interest that applies to equity release. This interest known as compound interest is usually added up to the loan. The interest plus the loan is usually repaid when the equity release plan ends, that is, when you pass away or permanently exit the home.

At this point, the home will be sold and your equity release provider will get their cut from the sale and the remainder will be given to you.

2. The Equity Plan Available

There are many available equity plans and features available to choose from. These plans differ which is why you need a clear understanding of which plan best suits you. It is highly advisable that you only consider equity release plans that are approved by the Equity Release Council as they don’t have a negative equity guarantee.

Getting equity release with approved plans guarantees you that you won’t owe more than what your home is valued at and you won’t leave your heirs with extra debts that need repayment.

There are plans which give you the provision to safeguard a percentage of the future value of your home. These aspects are important to help you find out the equity release you have.

3. Talk To An Equity Release Expert

The one most reliable way to find out if you have an equity release is to liaise with an expert who specializes in it. He or she will be able to analyze the value of your home and advise you appropriately on the equity release plans available for you and the applicable interest rates.

There are a few things to check for in an equity release expert before making any inquiries from them. Ensure first that the expert is a registered and approved member of the equity release council and that he or she is subject to the Financial Conduct Authority (FCA) regulations.

These institutions ensure that equity release advisors serve people as is required.

You being one interested in equity release, working with a qualified expert throughout the entire process will be a big plus.

We have a recommendation of an expert who meets all these requirements and will be able to guide you appropriately.