How equity release can deliver financial freedom
Equity Release products are designed for people over 55 to take cash value from their homes without having to move. There are a wide range of equity release products that can provide a valuable source of income for some people. It may be possible to take the money you release as a lump sum, as smaller amounts or a combination of both. Equity release products have changed dramatically for the better over the last few years and you will be surprised at the options and flexibility that is now available.
Equity release will reduce the value of your estate and can affect your eligibility for means tested benefits.
What do you need to know before considering equity release?
- Releasing the equity from your property is generally seen as a long-term commitment and is not ideal for short-term borrowing. The loan is usually repaid on death or long-term care from the sale of the house, so ensure you are happy with this before borrowing.
- Although you can repay an equity release at any time they are normally subject to an early redemption. If it is your intention to repay the loan before the end of the term then consider carefully the different products and choose the one with the right early repayment options to meet your needs. Some equity release schemes allow you to make monthly, ad hoc or partial repayments, if you intend to make repayments or want the flexibility we will use our expertise to guide you.
- Rolling up the interest on a lifetime mortgage will reduce the future value of your estate and the inheritance you will leave to your family or friends. Involving your family in the decision making process is recommended and we encourage you to invite them to the meeting if you would like them to attend.
- If you are in receipt of means tested state benefits such as pension credit and council tax benefit, you need to understand how releasing the equity from your property could impact on them. We perform a free state benefit entitlement report on every client to show you exactly how or if your benefits would be effected and advise you how to avoid any reduction in the benefits you receive.
- All equity release plans are portable from property to property, although some are easier to port than others. If you are considering moving house in the future make sure the property type you are considering meets with the lending criteria of the company you choose.
- You can choose to have a loan where the interest rolls up, or, choose to make monthly repayments based upon affordability. In any case, Equity Release products can be extremely flexible and you can elect to start and stop interest payments as you wish meaning that you are able to manage the product according to your circumstances at the time.
Our advisers will help you understand and identify all the options available to you. Equity release can be very useful in some circumstances but it is essential to seek guidance and advice on whether it is suitable for you. We will always help you understand if it is the right option and make sure you receive the appropriate support.
To learn more about how we can help you, please call us today or send us a message and we’ll be back in touch as soon as possible.