EQUITY RELEASE

What is equity release?
The value of your home, minus any outstanding mortgage, can be described as your 'equity' and is yours to do whatever you like with. Many people choose to leave it tied up in their property throughout their lives; however, more and more people are now choosing to release some of this equity and turn it into cash, which can then be used to fund one-off purchases; to enhance their lifestyles or to help loved ones. An equity release plan is the easiest and most popular way to do just that, without having to move house. There are no repayments to make during your lifetimes and with the most popular form of equity release, a lifetime mortgage, you continue to own your home 100%.

Because of growth in UK property values, there is every likelihood that your home is now worth significantly more than you paid for it. House prices have, on average, doubled roughly once every 8 years since 1950 - a rate that vastly outweighs the increase in income and living costs over the same period. As a result, many millions of Britons who may have reached or are approaching retirement age, now find themselves with a wealth of equity that far outweighs their savings and disposable income.
Recent years have also seen big improvements to the plans on offer. All are now fully regulated by the Financial Services Authority (FSA) and most feature much greater flexibility than in the past. You can maintain 100% home ownership, thereby benefiting fully from any future increase in the value of your property; there are guarantees to ensure you can never pass on debt, or 'negative equity', in your estate; plus you can also choose a plan that is 'portable', meaning you reserve the right to move home in the future. In short, equity release plans are now more flexible, more affordable and more secure than ever before.

Who can benefit from equity release?
There are thousands of people just like you who are enjoying the benefits and freedom that equity release offers. However, not everybody is suitable, which is why it is so important to speak to an independent specialist such as The Mortgage Centre UK Limited before you make a decision. In general you may be eligible to release funds from the value of your property if:
• you own your own home; and
• the youngest homeowner is 55 or over.
It is also a condition when releasing equity that you use some of your proceeds to clear any outstanding mortgage that you have against the property. Of course, this benefits you significantly, as your monthly mortgage repayment - for many people their most significant regular outgoing - becomes a thing of the past.
The amount you can raise is subject to your age and the value of your property, so you can release a larger percentage of your home's value the older you get.
We will discuss all of these factors with you during your free, no-obligation quotation, before advising whether or not we think that equity release is your best option.
In short, there are absolutely no restrictions on what you can do with the proceeds of an equity release plan. Why should there be? It's your equity after all.
In a recent survey of those people who have chosen to release equity from their properties, it was found that home improvements was the most popular motivation, followed by raising income for a more comfortable lifestyle. But whether you're looking to buy a new car or help out family members, equity release could be the answer.

The Mortgage Centre UK Limited has access to all of the Equity Release market.

This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.

To find out whether you, or someone you know, could benefit by arranging an Equity Release Plan through The Mortgage Centre UK Limited please telephone us on 01204 705110, call in to our office at 54 Higher Market Street, Farnworth or fill out some brief details on the EQUITY RELEASE ENQUIRY FORM.