Equity release has become quite a popular option for people who are looking to release capital from their properties without having to sell them.
Sales have nearly doubled over the past five years according to data from the Financial Conduct Authority. And, to keep up with demand lenders have extended the number of products on offer dramatically.
The equity-release market is evolving to offer greater flexibility and more choice. Some lenders now allow you to make regular interest payments on the loan. This helps to keep the long-term cost down.
In the 1980s and 1990s equity release gained a bad reputation as it was poorly regulated and thousands ended up owing more than their house was worth.
Fortunately, times have changed and the majority of equity-release products now come with a no-negative-equity guarantee. Which means that the amount owed can never exceed the value of your home.
If you’re thinking about equity release it’s important to understand the implications before agreeing to anything. We always recommend speaking to an expert who will take time to understand your current and future needs and work out which product is best for you.