Releasing equity from your home will increase your income – but you will need to consider how this will impact any means-tested benefits you receive. Mark Gregory explains more in the latest reader Q&A
The Question
I’ve heard equity release can impact some of the benefits homeowners receive. Which ones does this apply to and will my application be turned down if, for example, I claim disability benefit? Thank you for your advice.
Mark’s Answer
Thank you for your enquiry, and it is really important that if you are planning to raise capital from the equity in your home, you understand that capital raising can impact on certain, but not all benefits.
For example, some benefits are means tested including Pension Credit, Council Tax Reduction and Universal Credit and these could be impacted or lost without expert guidance and advice when raising capital.
However, some benefits including Attendance Allowance, Disability Living Allowance and Carer’s Allowance are non-means tested and not dependant on the amount of capital you have at your disposal and will not be impacted by capital raising.
Here at Equity Release Supermarket our fully qualified advisers will help, guide, and ensure that their advice does not impact on your existing benefits or any benefits that you may be entitled to. They will listen to what your objectives are and complete a benefits analysis allowing you to obtain the advice and guidance you need.
It may be possible to raise capital for your objectives and keep any current means tested benefits; however, this is largely dependent on your personal circumstances and objectives.
Therefore, I strongly suggest that you contact one of our expert advisers and they will provide you with bespoke advice based on your circumstances without obligation.
Mark Gregory, founder and CEO of Equity Release Supermarket, is here to answer your questions. Mark is an adviser himself with over 20 years equity release experience.
He launched Equity Release Supermarket 10 years ago and it has grown to become one of the UK’s leading equity release specialists.
Email kate.saines@emap.com to ask Mark a question
