More and more people approaching retirement age are looking for alternative ways to fund their golden years. Equity release could form part of the plan.

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The traditional way to fund retirement has always been with a pension, but with the financial uncertainty that the last year has brought, many are now wondering how to make the best use of their money and find ways to top up their monthly income.

With a lifetime mortgage, the most popular form of equity release, the money that you access from your property is tax-free and you still continue to own 100% of your own home.

This popular retirement finance solution has brought with it huge developments in plans, meaning many more options are now available to suit individual circumstances and requirements.

All equity release plans come with a no-negative equity release guarantee, meaning that you won’t pass on debt providing your home is sold for a reasonable amount. Plus, you have the option of protecting a percentage of your property value with an inheritance protection.

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Some plans now offer the option of making repayments, this can mean that you don’t accrue as much interest on the money that you have released. The repayment options can be flexible, depending on your circumstances.

You may be thinking about equity release but are unsure on what to do next

Step 1 – Have an understanding of what you want the money for. You can release a minimum of £10,000, the maximum depends on the age of the youngest homeowner and the value of your property. Once any outstanding mortgage has been repaid, the money that you release is yours to spend as you wish.

Step 2 – Contact a specialist broker who is qualified to offer equity release advice. Some advisors are tied to particular products, but through the Radio Times equity release service you will get access to advice from the whole of the market.

Step 3 – Arrange a quotation to discuss your borrowing needs. Through the Radio Times equity release service provided by Age Partnership you will be provided with a quote free of charge without any obligation for you to proceed. Only then if you choose to proceed and your case completes would a typical fee of £1,795 be payable.

Your advisor will tell you everything you need to know about equity release including the effect on the amount of inheritance you can leave and if your entitlement to means-tested benefits could be affected now or in the future.

Equity release requires paying off any existing mortgage. Any money released, plus accrued interest would be repaid upon death, or moving into long-term care. Equity release may involve a lifetime mortgage, which is secured against your home, or a home reversion plan. To understand the features and risks, ask for a personalised illustration.

Information correct at time of publishing.

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The Radio Times Equity Release Service is provided by Age Partnership Limited who are authorised and regulated by the Financial Conduct Authority. FCA registered number 425432. Company registered in England and Wales No. 5265969. VAT registration number 162 9355 92. Company address: Age Partnership Limited, 2200 Century Way, Thorpe Park, Leeds LS15 8ZB.

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