According to research by Key*, 38% of those releasing equity from their homes in the first quarter of 2021, used it to repay outstanding mortgages.

If you’re over 55, you could qualify for an equity release product to help pay off the current mortgage on your home, and as with most plans you do not need to make a monthly repayment and the loan is repaid when you die or go into long term care, using the sale of the property, you could live a retirement with lower monthly outgoings.

The equity release market currently has over 500 products available, with increasing flexibility and improving features for those seeking to obtain them. Not only that but interest rates are currently very low on equity release products. Equity release could be a good option to aid improving financial circumstances for those aged over 55, but should come alongside seeking independent advice from a qualified equity release adviser.

Equity release is a lifetime mortgage. To understand the features and risks, please ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice.

*https://media.kg-cdn.co.uk/mediacontainer/medialibraries/keypartnerships/testing/210514-2021-q1-market-monitor.pdf