Homeowners aged 55 and over can access the minimum age for equity release, a form of borrowing that allows you to draw down money from the value of your property without having to pay it back. It’s a popular choice for retirees who want to supplement their incomes and enhance their later life planning. But how do you know if it’s right for you?
If you’re aged under 55 and wish to use equity release, there are other options available to you. These could include transfer of ownership, second charge mortgages or remortgaging. However, it’s important to remember that age restrictions only apply when you make a full equity release application and that these products aren’t suitable for everyone.
Unlocking Home Equity: Understanding the Minimum Age Requirement for Equity Release
Typically, there is a minimum age for equity release because the lenders of lifetime mortgages and home reversion schemes require homeowners to meet certain criteria to qualify. These include age, health and the value of your home. It is also likely that your lender will require you to pay off any outstanding mortgages or other debt secured on your home.
Using an independent financial adviser who specialises in equity release will help you to explore all of your options and ensure that you’re making the best decision for your circumstances. They will have full market access, compare all of the UK’s leading providers and can recommend the most competitive deal. They’ll help you to understand how equity release works and any risks involved, such as inheritance problems or the potential impact on future planning.