Equity Release

Reid and Co Financial Services Ltd do not offer mortgage services, however you might be interested to read the brief summaries under the various headings shown in this section. They are purely provided for general guidance only and should not be relied upon. Your mortgage is probably the largest financial transaction and commitment you are likely to undertake. You should always seek mortgage advice which is totally independent and individually tailored to your needs.

Introduction to Equity Release

If you're over the age of 55, equity release offers you a way to use the value of your home to raise money.

Why do people consider Equity Release?

1. To provide an additional income
2. To provide lifetime gifts to relatives
3. For home improvements
4. For holiday home purchase
5. To fund long term care

You probably have other ideas - there is no restriction on how you use the funds.

However, let us first look at some options, as equity release can be an expensive way to raise money when taking into consideration payment of arrangement fees or interest.

Your Savings & Investments

If you have savings or investments you may wish to consider this alternative.

Benefits entitlement

These could include disability living allowance, council tax assistance, or pensions or savings credit. Equity release could prevent you from receiving such benefits so it's worth speaking to your local authorities to consider these areas first. They may be able to offer you grants or assistance with essential home improvements and alterations that you would otherwise pay for yourself.

A smaller home

If your family have grown up and they are off on their own financial journey now, your current home may be too big for your needs and you could consider something smaller and more economical to run. In this case, you could consider purchasing a smaller property, leaving you with a lump sum on completion.

Lifetime Mortgage can quickly erode the remaining equity and as a result there may be no value left to pass on.

'Equity Release' includes Home Reversion Plans and Lifetime Mortgages. To understand the features and risks please ask for a personalised illustration.