Equity release now available on second homes

2 October 2019

If you’ve considered equity release as part of your retirement financial solutions, previously you could only have applied to lenders for a loan against the equity in your main residence. But now a game-changing product has opened up equity release on second homes. 

There is only one lender currently (September 2019) available that will consider a loan against a second home, but if you’re one of the one in ten adults in the UK who has multiple sources of property wealth and are aged 55 or over, it does give you a financial option that hasn’t been available until now. 

Second-home equity release product conditions 

There are criteria attached to this new product: 

Second-home equity release product options 

The lender is offering two different options, giving you flexibility about how you manage your loan and the interest due on it: 

Who this product might be good for 

Deciding whether equity release is an appropriate financial solution for you needs careful consideration and expert guidance; so too does choosing a product that matches your needs and circumstances. But this may be a product to consider if: 

This product creates new possibilities for second-home owners, but we still always recommend expert, honest advice from an adviser who will take the time to understand your circumstances, and will help you weigh up whether equity release is the right way forward for you, setting out both the advantages and disadvantages so you can make an informed decision,” commented Jan Johnson, director of 55+ Equity Release. You also need an adviser who has extensive market knowledge so they can find the product that best suits your needs, whether on your main home or your second home, if you do decide to go ahead with equity release.” 

We’re delighted to see this innovation in the equity release market, offering the growing number of second-home owners more options than ever before to realise their retirement dreams

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