How can I release my equity if I am under 55?
If you are below the minimum age for equity release then you could still release some of your home’s equity in other ways.
Downsize your home
A popular way for under-55s to release equity is by moving to a less expensive property. This could enable you to access some of your property wealth as cash without taking on additional debt.
Of course, many people can’t or do not wish to move from their current home. It might be that you already live in the smallest home suitable for you and your family. Or perhaps your home ideally suits your current and future needs, so you plan to stay there for the rest of your life. In this case, you may need a different solution for your financial needs.
Borrow more if you already have a mortgage
If you have a mortgage on your home then you may be able to increase the size of your loan to raise the money you need. You may of course need to demonstrate that you can afford to take on this extra borrowing. Some options include:
- Apply for additional borrowing: You may be able to apply to increase your loan with your current lender. These applications are sometimes quite straightforward, with decisions often given in as little as a week.
- Remortgage: You may be able to move your outstanding mortgage debt to a different mortgage deal, either with your current lender or a new one. At the same time, you can apply to increase your mortgage loan to raise additional funds. Our selected advisers can help you search for and arrange a remortgage deal – please call us on 0800 096 2215 or request a free call back to discuss your options with an adviser.
- Arrange a second-charge mortgage: A second-charge mortgage means taking on an additional secured loan against your home. You might use this option to release some of your equity if you will incur penalties by remortgaging your current deal early. It does however mean that you will have two mortgages to pay each month and your second-charge mortgage lender will need proof that you can afford this.
Take out a home equity loan if you don’t have a mortgage
Also known as a homeowner loan, this is a loan secured against the value of your home. It can be a useful option for homeowners who do not have a current mortgage deal and so cannot remortgage.
You will not have to sell or move from your home, but you will have to make monthly repayments towards the loan until it is repaid in full. Homeowners may choose this type of loan to consolidate other debts such as loans and credit cards, make home improvements or perhaps buy a car.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.