Equity in home advice

SharonY512

Hi I'm 54 this year and have a couple of pension pots. I don't have the income I used to have to save a lot toward retirement etc. The only thing I have is a mortgage of about £85k on a house worth probably £350k.
I don't want to sell as it's my home but is there sensible ways of tapping into some of the equity to maybe go towards a buy to let or something as a future investment? It just seems a lot of trapped dead money that I feel maybe I could utilise for future.I don't have a decent deposit or sufficient income for the normal btl route.Any advice would be appreciated.

Linton

The only sensible products in that area are Equity Release/Lifetime Mortgages. They comes in 2 forms - interest only or roll up where the interest is added to the debt. Both recover their money from the sale of the house when you die or go into a long term care home. However they wont meet you needs:

Interest only mortgages require you to have the secure income to pay the interest. But that seems to be your problem, you dont. If you did you could put it into a pension.

Roll up wont give you more than aboout 30% of your house value as a lump sum when you are 65, more when you are older. You arent 65 and 30% of your house isnt a lot more than your outstanding mortgage.

The other alternative is to downsize wihich is the only practical way I can think of for someone in your circumstances to make use of your house equity.

kidmugsy

If your long term plan is equity release then you should just wait until you are older and it is better value. Meantime consider taking in a lodger.

agarnett

Linton wrote: »

The only sensible products in that area are Equity Release/Lifetime Mortgages. ...

Sensible products? For a 53 year old going on 54?