Obtaining a home equity release
Find out what you need to know if you are getting a home equity release.
09:18 28 September 2013
If you have been wondering about the possibility of a home equity release there are a few things you ought to know. There are prerequisites for obtaining a home equity release and unless you meet the criteria you may not be able to get the funds you were hoping for.
Here are just a few things you would need to know:
- Home ownership—you must “own” your home, which means that you cannot be renting it. This does not necessarily mean that the home needs to be completely paid off, although it typically works in your best interest if that is the case.
- Age restrictions—the home equity release option is only available for homeowners aged 55 and older. If you are younger than 55, you will need to pursue other options to obtain your funds.
- Minimum value—your home needs to meet the minimum value requirement of £75,000 in order to qualify for the programme.
- Joint Applications—remember that if you are filing an application for a home equity release jointly, that the youngest applicant will be used for the age restrictions. Make sure the applicants are both at least 55 years of age to qualify.
- Minimum funds—the smallest amount that can be given with a home equity release is £10,000, even if that is more than the amount you need.
- Existing mortgage—if you still owe money on your current mortgage, the home equity release amount that is loaned out to you will be added onto the current mortgage amount.
- Health assessment—due to the nature of giving out a home equity release on property that is already mortgaged, your health may be considered before final approval.