Using equity release to plan a dream wedding
Did you know you can use equity release for gifting? Also known as a lifetime mortgage, you can help your children/grandchildren have the wedding of their dreams. It may also fund your income for the year. So this could help you take time off to help the kids. Or help you plan and enjoy your own wedding.
To qualify for a lifetime mortgage, you’ll need to:
- Be aged 55 or over
- Own (or be buying) your home, with little or no mortgage left to pay
- Be buying (or own) a home worth at least £70,000 or £100,000, depending on your property type
A lifetime mortgage can help you gift your loved ones a ‘living inheritance’. Rather than leaving a lump sum after you pass. You can see them move into their new home or help them with the cost of a wedding. Using the value of your home.
If you’re planning on celebrating a wedding in 2024, you’re looking at an average spend of £20,775*. However, most young couples preparing for upcoming nuptials haven’t saved enough. And so, we are seeing more and more parents chipping in!
You can take a loan, usually for around 50% of the property’s value, and there are no monthly repayments. The interest rolling until your death when the home’s sale clears the debt. But the total debt can never exceed the overall value of the house.
The practice of borrowing against your home to help fund a wedding for your children or grandchildren is growing. The rising cost of getting married has made weddings a popular reason for lifetime mortgages.
Borrowers should remember that lifetime mortgages have higher interest rates than their regular counterparts.
Chat with us today to hear your options and plan your child’s or grandchild’s dream wedding. Or even your own!
This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice. A fee may be charged for mortgage advice. The exact amount will depend on your circumstances.