Cash in on house price rises - without selling your home

The average UK property is now worth £214,000, up almost 9% in a year, according to the Office for National Statistics. It's one of the largest hikes in property values we have seen over the past decade, and may well provide a warm glow of satisfaction to those who have make significant sacrifices to get on the property ladder.

Aside from the warm glow, however, it's not a great deal of use.

According to the Resolution Foundation, more than 20% of property wealth in the UK is held by those in retirement. It offers little comfort to those struggling on a fixed income to know that their property is worth more than it was this time last year. It's not going to help them pay the bills, or pay for home repairs and improvements.

If they were to sell up, they could get their hands on the cash, but not everyone is ready to part with the family home, and downsizing in order to free up some of the money tied up in the property doesn't always add up. There is an alternative, however: equity release.

Click here to find out how much cash you could unlock

But, what is equity release?

Equity release allows homeowners who are aged 55 or over to release some of the equity tied up in their home and turn it into tax-free cash. It usually means taking out a lifetime mortgage against the property. Interest on the mortgage will roll up, and will need to be paid when the property is eventually sold. Rates on these kinds of mortgages are currently highly competitive.

Earlier this year, for example, OneFamily introduced a new lifetime mortgage plan at 2.96% - the lowest variable interest rate currently available on the market. This gives consumers more flexibility to access a plan that best suits their circumstances.

The monthly variable rate is reviewed annually and linked to Consumer Price Index inflation, but capped at 7.72% a month which assures you that you will never exceed this monthly rate.

Other providers have been busy developing products that allow more freedom and for customers to release even more tax-free cash, providing more options for older homeowners.

Click here to find out how much cash you could unlock

Getting the best advice

Those who are considering releasing the cash locked up in their homes should seek independent, impartial advice to ensure that it is the best option for them. Whether they are looking to release cash to pay off their standard mortgage, make home improvements or just looking to boost retirement finances, companies like Age Partnership could help.

A qualified 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.

Click here to find out how much cash you could unlock.

To find out more about equity release including how much money you could release from your home,

Click here or call us on Freephone 0800 464 0721.

Equity release may involve a lifetime mortgage or a home reversion plan. To understand the features and risks, ask for a personalised illustration.

Age Partnership provides advice for free and without obligation. Only if you choose to proceed and your case completes would a typical fee of 1.7% of the amount released by payable.

*The actual rate available will depend upon your circumstances, ask for a personalised illustration.