Equity Release

Equity Release: Unlocking the Value of Your Home with The Mortgage Store Cheltenham & Gloucestershire

If you’re aged 55 or over, equity release offers a way to access the cash tied up in your home. It’s an increasingly popular option for those looking to boost their finances in later life or enjoy a more comfortable retirement. At The Mortgage Store Cheltenham & Gloucestershire, we specialise in providing tailored advice to help you explore if equity release is the right choice for you.

How Does Equity Release Work?

Equity release allows you to access the value of your property as cash without the need to sell or move out. This can be appealing, especially as approval is often possible even if you haven’t finished paying off your mortgage.

Typically, with equity release:

• You don’t make monthly repayments.
• The loan and accrued interest are repaid when your home is sold, usually after your death or if you move into long-term care.

However, there are different equity release options available, and each comes with unique considerations that can affect how much you can borrow and what your financial legacy will look like.

Lifetime Mortgages

The most common type of equity release, a lifetime mortgage, allows you to borrow against the value of your home while retaining ownership.

Key features:

• You can take the cash as a lump sum, in smaller amounts over time, or a combination of both.
• No monthly repayments are required—interest rolls up and is repaid when the house is sold.
• Some plans allow partial payments to reduce the balance or pay off interest over time.

No Negative Equity Guarantee: Most lifetime mortgages ensure that your beneficiaries won’t owe more than the value of your home, even if property prices fall.

Home Reversion Plans

For those aged 65 and over, a home reversion plan offers another equity release option, providing a tax-free lump sum.

How it works:

• You sell a portion of your home to the provider while retaining the right to live there rent-free for the rest of your life.
• When the property is sold, the provider receives their share based on the percentage they own.

It’s important to note:

• The provider will often value your home below market value to mitigate their risk.
• If property values rise, the provider’s share increases proportionally.

Alternatives to Equity Release

Equity release isn’t the only way to unlock cash from your home. Downsizing—selling your current property and moving to a smaller, less expensive home—can achieve similar results without the need to take on debt.

However, many people prefer to stay in their homes, especially if it holds sentimental value or offers the comfort and familiarity they cherish.

Get Expert Equity Release Advice

Equity release can provide financial freedom in later life, but it’s essential to explore your options carefully. At The Mortgage Store Cheltenham & Gloucestershire, our qualified advisers will guide you through the process, ensuring you understand the benefits, risks, and implications for your future and your family.

Contact us today to arrange a no-obligation consultation and discover how equity release could help you achieve your goals in retirement.