Paying off your existing mortgage
Having debt can be stressful. If making monthly payments on your mortgage is an increasing financial burden now that you’re in or approaching retirement then you might be interested to learn about equity release.
According to Key Retirement’s Equity Release Market Monitor report 22% of customers have used equity release to clear an outstanding mortgage*.
Equity release provides homeowners with the means to unlock some of the equity tied up in their home as tax-free cash to use it as they like. For example, to repay existing debt. The cash released must be used to repay any secured debt first. You should think carefully before securing a loan against your property.
See how much cash you could release today with a free online quote.
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Is equity release the financial solution for you?
Equity release could be your chance to
- Get tax-free cash with typically no monthly repayments to make as the loan, plus roll up interest, is repaid when the plan comes to an end
- Take cash as a lump sum or initial lump sum and then smaller instalments (typically £2,000 minimum)
- Pay off your existing mortgage
- Stay in your home for life with ERC approved plans
- Qualify for more money based on certain health conditions and lifestyle choices
- Additional considerations – Equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits
Customer story - Mrs Boughton
“I was very concerned! At my age there aren’t that many financial options out there.”
Mrs Boughton, 73 from Brighton and Hove, had lived in her property for 27 years when she was informed by the bank that her interest only mortgage was due to come to the end of its term. She had a shortfall with no means to pay it off.
Downsizing to a smaller property was something Mrs Boughton wanted to avoid, she loved her house and if anything she wanted to improve it.
After her initial contact with Key, Mrs Boughton booked an appointment with her local equity release adviser.
“My adviser Steve was so helpful. He worked his visits around mine and my son’s schedules and explained everything to us in full, even the advantages and disadvantages of equity release. He found the product that met my needs and encouraged me to think about it."
Mrs Boughton went ahead with equity release and has now paid off her interest only mortgage, easing the burden of monthly repayments.
“The whole process was simple. There was so much help along the way."
A lifetime mortgage is a popular equity release plan. This is a loan that's secured against your property. To find out more about equity release, download your free guide today.
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Want to find out more about equity release? Download your free equity release guide by Key Retirement today.
*UK Equity Release Market Monitor Half Year 2016
We recommend that you read is it right for you?
thoroughly if you are considering equity release.