As we have outlined in our other blogs the main appeal of equity release is that it can give you a large sum of money while allowing you to still live in your own home. It means you can remain there until you die or move to permanent long-term care. Most equity release products are designed to be long-term options. If you think your circumstances or financial requirements are likely to change in the future tell your financial adviser and they will be able to find the right product for you.
It is possible to do equity release twice but it will depend on the terms of your existing lifetime mortgage and the outstanding balance. A lender will look at your age, health and the value of the property which will help them decide if any extra funds can be released.
Drawdown Lifetime Mortgage
If you have chosen a drawdown lifetime mortgage you can take an initial lump sum and then release further amounts later on, if and when you need it. This means the amount of interest that you pay is reduced and also means you only spend what you need. The type of scheme is also less likely to affect any means-tested benefits you receive.
Can you switch equity release provider?
If you have already taken out an equity release loan you may still be able to switch to another with more competitive interest rates or which will allow you to release more money. A different plan may also come with added features such as inheritance protection or downsizing protection. Inheritance protection is available with some lifetime mortgages and it allows you to ring-fence a percentage of your property’s future value as a guaranteed inheritance for your family or other beneficiaries. You should take specialist advice on inheritance when you consider equity release.
Downsizing and Equity Release
If you want to downsize after you have taken out a lifetime mortgage you can pay back the loan. However, if you think you will want to do this, it is worth making sure you choose a product that does not include early repayment charges. Most lifetime mortgages allow you to move the product to a new property, as long as it meets the lender’s criteria. This should mean you don’t need to take out a new equity release product.
Equity release for multiple properties
It is also possible to do equity release twice if you own multiple properties and have the equity available. Lenders will check that you are not over-leveraged before they allow you to apply for another equity release product. It is worth remembering that the amount of money you can borrow may be less than the amount for your main family home.
FAQs on equity release
Watch our short question and answer videos for more answers to frequently asked questions on equity release.
:: Use our Equity Release Calculator to work out how much cash you could release.
It is important to take expert advice on equity release before deciding whether it is right for you. Contact us to find out more from one of our highly trained advisers in Kent, Surrey and Essex.
