Equity release at 50 release schemes are designed for older homeowners who have a significant amount of money tied up in their property. These schemes can be in the form of a lifetime mortgage or home reversion plan and they allow you to release some of this value, tax-free.
The most common use for this type of finance is to pay for specialist care items, fund home improvements and give cash gifts to family members. However, it’s worth pointing out that a significant number of people also choose to buy holiday homes or even move house with this money, according to MoneyNerd.
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However, the most important thing to remember is that taking out an equity release loan at this age is a major decision that should be taken seriously. The reason for this is that while a lifetime mortgage has no monthly repayments, interest continues to build up and can ultimately erode a huge proportion of the remaining equity in your home.
This is why the majority of equity release providers do not offer these plans to anyone under 55, according to research by SunLife. It’s also the case that many later life advisers are trained to look at equity release as a first option for those who cannot get a mainstream mortgage, but this is not always the best option available.