Article | Dec 2023
Planning for retirement comes with its share of financial considerations, and one question on many homeowners’ minds is, "Am I eligible for equity release?". This financial solution offers the potential to boost your retirement budget, but understanding your eligibility is crucial before diving into the possibilities of a tax-free cash injection transforming your later years.
Eligibility criteria simplified
The eligibility criteria for equity release revolve around some key factors: your age, property value, current mortgage, and desired release amount. Here, we address common questions about eligibility for equity release with a Lifetime Mortgage.
It must be a UK property worth at least £70,000.Your property doesn't have to be mortgage-free, but any remaining mortgage must be clearable upon equity release completion, either using the released funds or other savings.
The youngest homeowner must be aged 55 or over.
· The minimum amount available for release is £10,000.
· The maximum amount is dictated by your age and the value of your home.
What about your credit score?
As there are no affordability checks, your credit score won’t affect your eligibility for the majority of equity release products.
If you are in a position of adverse credit, you could still be eligible to release equity. Let your adviser know and they will guide you through your options.
For comprehensive information on equity release eligibility, Responsible Life is here to help. Use our free online calculator for an instant estimate of your potential tax-free cash release. Alternatively, contact our friendly Information Team at 0800 048 5807.