Worried about paying your mortgage? We have various ways that we can help you.
Equity release can help you fund your retirement plans by unlocking a portion of the value of your home and turning it into cash. You can choose whether to receive that money as a single tax-free lump sum or small amounts over time. Equity release comes in the form of either a home reversion plan or, more commonly, a lifetime mortgage.
There are a number of factors that determine equity release eligibility, such as applicant age and the value of the property. Releasing equity from your home is a big financial decision that may affect your future plans and your legacy if you intend to leave anything to beneficiaries so be sure you’ve explored all the options. Unless you own a large proportion of your home and have been repaying your mortgage for a long time, there may be no real benefit to taking out an equity release loan.
Start by using our eligibility checker to find out if you qualify for one of the Scottish Widows Bank Lifetime Mortgage.
There are a number of factors that lenders look at when deciding whether you are eligible for equity release. These usually include:
Taking out equity on your home can provide a financial boost to retirement plans. If you’re searching for funds to buy another property or help a family member to get on the property ladder, you might want to look into it more seriously
Access to your money also comes with some flexibility over when and how much you choose to get. Receive a single tax-free lump sum, or choose to take smaller amounts over time.
Releasing equity from your home may limit what you can pass on to your family or beneficiaries when the loan is eventually repaid. However, you may be able to ring-fence a portion of your property’s value so that loved ones can still benefit when you pass away, and you don’t even have to move out of your home.
You’ll also benefit if your property increases in value – it’s more money which can be passed on after your death, or even borrowed against with another release of equity. And you won’t have to pay back any more than the value of the property once it’s sold, as lenders who are members of the Equity Release Council operate a no negative equity guarantee. The Equity Release Council (ERC) are a formal organisation that represents all equity release lenders, regulated by the Financial Conduct Authority.
If you’re wondering if a lifetime mortgage could help you, it’s important to consider the advantages and disadvantages. Some examples of these are detailed below but your adviser will always discuss your needs and circumstances to decide if it is right for you.