Equity Release, Unlock the Power of Your Home’s Value and Give Your Children the Perfect Start

Are you a retiree in your 70s, enjoying life in a mortgage-free home? As property prices soar, you may be wondering how to support your children in purchasing their first homes. We have a solution that can make your dreams a reality: equity release. By tapping into the value of your property, you can gift your children a generous deposit or even buy them a home outright. But before you dive in, let’s explore the possibilities and ensure you make the right decision.

What is Equity Release?

Equity release is a financial product designed for homeowners aged 55 and above. It empowers you to access the tax-free money tied up in your property. With a lifetime mortgage, you can secure a loan against your home, typically up to 55% of its value, while still retaining ownership. This newfound wealth can be used in various ways, including helping your loved ones with a deposit for their new home.

Is Equity Release Right for You?

Choosing an equity release plan requires careful consideration. Interest rates have been rising, so it’s crucial to assess your comfort level with accruing interest over time. It’s also wise to discuss your plans with your family, as the funds you intend to gift your children may affect what is left for them on your death.

Considering your future financial needs is vital too. If you anticipate requiring funds for care costs, downsizing, or home improvements, equity release could impact the amount of money available to you later on. So, it’s important to weigh the pros and cons.

Expert Guidance for a Secure Future

To make an informed decision and ensure a secure financial future, seek advice from a specialist equity release adviser. At Fintuity, we have experts who can guide you through the process and help you select the perfect policy that aligns with your unique circumstances. We prioritize your well-being and will explore alternative options before recommending equity release, only if it is truly suitable for you.

Choosing the Right Equity Release Plan

When selecting an equity release plan, you may wonder how much money will be left for your loved ones. The good news is that recent developments have introduced options that allow you to retain an inheritance while accessing a portion of your property’s value.

Consider whether you prefer making interest or capital repayments during the plan. Paying the interest as you go can prevent compounding, leaving more equity to pass on when the property is eventually sold. Some plans even offer “inheritance protection,” ensuring a guaranteed inheritance by safeguarding a percentage of the property’s value. Keep in mind that this may come with higher interest rates, so careful consideration is essential.

Flexibility and Freedom with Drawdown

Our plans also offer a drawdown facility, providing you with flexibility and cost-effectiveness. Take money as needed, minimizing interest costs since interest only accrues on the funds you release. This is an ideal choice if you want to provide immediate financial assistance to one child while keeping resources available for future needs.

Tax Implications Made Clear

Equity release and inheritance planning can have tax implications, which is why we recommend consulting a specialist. Taxation related to equity release can be complex, Fintuity provides independent, personalised advice which enables informed decision-making.

Understanding the Essentials

Keep in mind that equity release typically requires paying off any existing mortgage. The money released, along with accrued interest, is usually repaid upon death or when moving into long-term care. We’re here to guide you through every step of the process, ensuring you have a clear understanding of the essentials.

Unlock the potential of your home and give your children the perfect start they deserve. Contact us today.
Founded in 2017, Fintuity has fast become one of the only digital Independent Financial Advisers (IFA) in the United Kingdom. We offer all the services of a traditional IFA but via our secure online platform. Fintuity offers a wide range of financial advisory services including pensions, protection, investments and mortgage advice. The key difference is that as an exclusively digital service, we can offer significant savings and a service that is direct to you and on demand.