Free guide to equity release and unlocking cash from your home
From releasing equity to interest-only mortgages: the complete guide to unlocking the money from your home
A combination of rising interest rates and shaky home prices has dampened interest among those over 55 for stock release plans that would allow them to unlock some of the value stored in their homes.
Still, there are other ways for money-poor homeowners with lots of home equity to use their property to provide them with financing – as explained in a new free and comprehensive guide from The Mail on Sunday.
> Get your free equity release guide
These options range from downsizing to interest-only mortgages where a borrower pays monthly interest on a lifetime loan.
Free Guide: The MoS has created a guide to unlocking your home’s money
When releasing equity, a homeowner pays no interest. Instead, it is rolled into the loan.
Industry experts say many homeowners considering a stock release plan are bidding their time in hopes that rates will fall.
Interest rates are of utmost importance to those who release equity through such a plan. The higher the rate a homeowner gets stuck on, the faster their debt accumulates.
The loan is eventually paid off from the sale of the home when the borrower dies or takes long-term care.
While interest rates vary by provider and vary depending on how old someone is when they take out a subscription, they are currently priced between six and eight percent.
This compares to an average price of 5.7 percent last autumn.
Plan providers — such as Legal & General and Scottish Widows — now allow borrowers to make free partial repayments to reduce outstanding debt.
The Mail on Sunday has produced the complete guide to unlocking the money from your home.
To request your free copy, call 0808 258 5160 or visit the link below.