Did you know you can use a 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.

What is equity release?

A equity release 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!

To qualify for equity release, 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!

How much equity can you release from your home?

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.

To learn more about the exact amount you money you can release from your home, use an equity release calculator. 

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.

Equity release interest rates

You should keep in mind that equity release mortgages have higher interest rates than their regular mortgages. In the Summer 2024 Market Report, the Equity Release Council stated that the average advertised interest rate was 6.91% in July 2024.

Getting equity release advice

Getting independent professional equity release advice to guide you through the process of releasing equity from you home is key. Typically the fee charged for equity release advice depends on your circumstances, but the price can go up to £995. If you are looking for a professional to help you, we at the right advice are a team of advisers ready on hand to help.

Chat with us today to hear your options and plan your child’s or grandchild’s dream wedding. Or even your own!