The difference between what your home is worth and the amount you owe to your mortgage lender is known as the “equity" in your home. In simple terms, for example, if your home is worth £300,000 and the mortgage outstanding is £200,000 then you have approximately £100,000 equity in your home, not taking into account any other charges or fees that may be payable.
Equity release allows you to access that portion of the money tied up in your home without having to sell the property.
If you are over 55 years old and want to have some extra money – perhaps to secure an inheritance for your family - you can release some of the equity tied up in your home and take it as a large lump sum, a number of small amounts, or a mixture of both.
In the main, there are two equity release options, a Lifetime Mortgage and a Home Reversion plan.
Lifetime Mortgages and Home Reversion Plans are very complex and only CeRER qualified mortgage brokers can give advice on these types of mortgages.