Are you over 55 and looking to release equity? Then it’s important to understand the implications of your decision. equity release age 50, which includes home reversion and lifetime mortgages, can be expensive if you live for a long period of time. The longer you live, the more interest you’ll need to repay, potentially exceeding the value of your property. This is why most providers set a minimum age of 55.
However, the majority of people in this age range don’t realise that there are other options that could be more cost-effective and flexible. A specialist adviser can explain the benefits of alternative funding methods to help you make an informed choice.
Early Equity Release: A Guide to Unlocking Financial Freedom at Age 50 and Beyond
Equity release is a way for older homeowners (the minimum age is usually 55 but can be 60) to get cash out of their homes without having to sell or move house. The money that’s released can be used to pay for things such as holidays, new furniture or to improve their quality of life in retirement. It can also be used to ringfence an inheritance or include a ‘no negative equity guarantee’, both of which are useful features for later life borrowers.
But, according to a recent study by over 50s experts SunLife, just 6% of homeowners who are aware of equity release actually understand all the main facts about it. For example, less than a quarter knew that you can still move house with an equity release plan in place or that you don’t have to make monthly repayments.