It might come as a surprise, but you can actually get access to your equity simply by remortgaging for a higher amount than is left on your current mortgage. You may be eligible to “port” or transfer the equity release arrangement to your new property with the equity release provider’s prior agreement. What is equity release/lifetime mortgage? If you need to release equity from your home to help your child buy a property, read our essential guide... Credit: How to use your equity to help your child. If you’re a homeowner aged 55-85 you could release tax-free cash from your home without having to move. If you wanted to release this equity to buy another property, you could potentially borrow up to £475,000, which would provide you with £275,000 for the purchase and take your LTV to 95%. If you’re over 55 and you own your own home, equity release could help you unlock your cash tied up in your home and enable you to enjoy a more comfortable retirement. However, there is a way you can release some of your equity (and get that money in your bank account) without selling up. You may be able to borrow money secured against your home equity. Equity release allows you to release tied up cash in your home for you to enjoy now as either a one off cash lump sum or a monthly amount. 86%. Whether you can top-up your mortgage will depend on your lender’s terms and conditions. Photograph: Christopher Furlong/Getty Images . It gives you access to the value you have built up in your home for your own use in your retirement years and is an appropriate option for many looking to maintain a comfortable lifestyle or to meet unexpected financial needs. The actual amount of time your equity release process takes, also depends largely on how efficient and experienced your solicitor is. If you are moving to a less expensive property, you may only be eligible to transfer a proportion of the equity release arrangement in which case, you would need to repay the balance. If you already have a mortgage you may be able to increase or top-up your mortgage to extend or improve your home, cover educational expenses or give a parental gift. So, for example, if your home is currently worth £500,000 and you have a mortgage of £200,000, your current loan to value is 40% and you have £300,000 of equity in your property. Although you can move home and take your lifetime mortgage with you, if you decide you want to downsize later on you might not have enough equity in your home to do this. If you release equity from your home, you might not be able to rely on your property for money you need later in your retirement. Response Rate. Equity release plans, such as the lifetime mortgage, enable you to release some of your home's value. An equity release lifetime mortgage adds the monthly interest charges to the amount borrowed and is repaid when the property is sold. Equity release is a way of unlocking some of the value of your home and turning it into a tax-free, cash lump-sum. No obligation 10 minute call. The maximum mortgage is 90% of the property value. Equity Release is when you release tax-free cash from your home. Mortgages & Homes. Email . How equity release could help your kids get a home of their own With a plan from over-55s finance advisers Key Retirement, a cash boost from your house could see your … Inform Yourself. Until then, you’ll remain a homeowner with no need to move out. I f you own a property worth at least £70,000 and you are aged 55 and over, you could be eligible to release equity from your home using a lifetime mortgage. We're online: Monday – Friday 8am till 6pm Saturday 8am till 1pm. Name * First Name Surname. Equity release lending for cash-strapped older homeowners is set to resume for the first time since the financial crash after specialist mortgage provider Seniors Money secured financial backing from Bank of Ireland: Aisling. Last updated: May 15, 2017; Existing Customer Mortgages Advantages of a remortgage include releasing equity in your house to do home improvements but also allow you save on repayments with lower interest rates when you refinance. Most types of Equity Release are available when you reach age 55. However, some do so in order to release some of the equity they have built up in their property, which they can then put towards home improvements, repaying other debts or offering financial help to loved ones. Bank of Ireland: Tara . These … schemes are mainly targeted at older home owners. You might want to enjoy your retirement, go on the holiday of a lifetime or simply supplement your pension. Some mortgage lenders may allow you to use a mortgage top up to consolidate short-term debt. You take out an Equity Release to top up an existing mortgage with us; You take out a Buy to Let mortgage to buy an investment property; You buy your first home, move home or switch your mortgage to us and you are not a Bank of Ireland current account customer; And you draw down your new mortgage between 5th September 2016 and 31st December 2021. Phone; Email; By proceeding you agree to terms of business and privacy policy. How can I apply for a top-up or equity release? Releasing equity in your home can be an affordable way to cover significant expenses such as home improvements, education expenses, medical expenses, etc. Your home equity goes up in two ways: as you pay down your mortgage; if the value of your home increases; Be aware that you could lose your home if you’re unable to repay a home equity loan. Bank of Ireland: Richard F. Bank of Ireland: Megan. The most popular plan is a lifetime mortgage - where the homeowner retains ownership of the property but the property is charged with the repayment of a loan or mortgage, which accrues rolled-up interest over the period of the homeowner's lifetime. How borrowing on home equity works. With equity release schemes you can turn some of the value of your mortgage in to hard cash. The UK equity release market is basically made up of two types of equity release plan. Make the most of life with home equity release Equity release works by freeing up the equity that’s built up in your house – without you having to sell up or downsize. The 2% Cashback Mortgage Offer is not … Buyers in London must save even longer … It’s essentially a long-term loan that’s repaid using your home once you pass away or require long-term care. You’ll have to tell your equity release company so that they can decide if your new home is similar in value. For what reasons can I take out an equity release mortgage on my home? Home is where we all enjoy spending time, its where our special memories are made, but it is also where a large portion of earnings are spent on over the years. KBC Bank Ireland plc is regulated by the Central Bank of Ireland. ‘EQUITY Release’ is one of those magical terms steeped in the probability of getting it badly wrong. The main disadvantage of a home reversion scheme is that you will only receive (usually) a maximum of 60 per cent of the market value of your home, and often much less (as little as 30 per cent). Older people could be eligible for equity release loans for the first time in 10 years under new proposals by AIB. Post reply Unfollow thread Follow thread. What is equity? If you are over 60, own your own home and are looking to free up some cash, then an Equity Release Scheme is an option for you. It is a £4bn per year market now. There’s a lot to think about if you’re new to Equity Release. 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