Lots of homeowners are accessing tax free cash from their homes, so you may be wondering if it’s right for you. For many, this is a very attractive option to fund that special purchase or home improvement. Firstly, you need to be over 55. It’s a type of loan, for example a Lifetime Mortgage. You can get up to 60% of your property’s value. Typical interest rates are between 3% and 7%. There will be other fees, like other mortgages. …
Short answer: No. Equity Release Plans (also known as Lifetime Mortgages) are not liable for tax. Longer answer: Lifetime Mortgages do not attract tax because they are a type of (long-term) loan. However, you might take a lump sum equity release plan and place it in a savings account. As a result of this, you will accue interest. This interest could attract tax, if it exceeds your Personal Savings Allowance. If you reach your Personal Savings Allowance limit, you can protect …
Equity Release may be the best way for you to make that long desired purchase. If you are over 55, and own all or part of your home, we can advise as to how Equity Release may be right for you. We have whole market access and are authorised by the Financial Conduct Authority.