Equity Release: Income-Based Eligibility
As property values continue to rise, many homeowners are finding themselves in a position where they can’t afford to sell their home and downsize without taking on too much debt. UK equity release is an option that allows homeowners to access the equity they have built up in their home over time, combining it with a lifetime income plan that could be paid out by either monthly or lump sum payments.
UK equity release is a great option for homeowners who are struggling with the idea of downsizing and don’t want to take on too much debt.
To be eligible for this type of financing, homeowners must be at least 60 years old and own their home outright. Also, homeowners must not be in debt and have a minimum income of £18,600. Finally, the property being released from must be the primary residence and not a buy-to-let.
There are several different equity release products available to homeowners, all with their own benefits and risks. For instance: the lifetime annuity is paid out monthly over time; this option has no lump sum payment but does provide guaranteed income for life as long as you continue living in your home. The term-time plan differs from this because it’s typically paid out by one big lump sum at an agreed date or when certain conditions are met (e.g., death).
The best way to find out if equity release is an option for you is by contacting a UK mortgage broker such as us! We’ll help see how the process works, discuss lifetime income plans that are available, and determine whether it’s the right strategy for your situation.