Equity release offers several advantages, including the option to receive a cash lump sum or regular monthly payments. This can be particularly helpful for covering regular bills, funding home improvements, or managing care costs.

In many cases, you can continue to live in your property for as long as you need to. Additionally, you may have the flexibility to move to a new property, provided that it meets the equity release provider’s criteria.

Equity release also allows you to set aside part of your property’s value as an inheritance for your family members, ensuring they benefit from your estate in the future. Unlike renting, you do not need to pay rent to the equity release provider.

For lifetime mortgages, there is often the option to choose whether to pay back the interest as it accrues or let it build up over time. The loan is only repaid when you pass away or when your property is sold.

Some lifetime mortgages offer interest rates that are either fixed or capped, providing certainty about future repayments. Additionally, certain equity release schemes include a guarantee that the amount owed will never exceed the value of the property.

Another benefit is that you won’t have to pay tax on the equity released from your main home, making it a tax-efficient option for accessing funds.