Equity release has gained significant attention as a financial solution for homeowners aged 55+ who are looking to unlock the value tied up in their homes. Morning television is full of adverts targeting the retired generation to promote releasing instant tax-free cash from their homes.
Before making any decisions, it is important to seek good quality equity release advice as to whether unlocking the value of your home is a good idea for your individual circumstances.
In this article, we will help you understanding the considerations by delving into the pros and cons of equity release.
Let’s explore some of the key aspects that can guide you in determining if equity release is the right financial option for you. Remember, great independent equity release advice will prove invaluable in this area.
Our clients choose to release equity from their homes for several reasons, the main ones being; to repay an outstanding mortgage and/or debts, supplement monthly pension income, gifts to family members; to buy a new bigger or smaller property, divorce settlements in later life, or a big purchase such as a boat or car.
The amount you can borrow on an equity release plan will depend on several factors such as your age, whether you have a partner and health. Unlike normal mortgage products, your credit score is not usually a factor with this type of product.
Equity release is aimed at homeowners over the age of 55. Your property, which needs to be your main residence, will have to be valued at £70,000 or more to qualify. If the property is in joint names, the youngest applicant will need to be aged 55 or over.
The amount of tax-free cash that you can release will depend on several factors such as, age, health and the value of your property. There are two types of equity release available, a lifetime mortgage, which is most recommended, and a home reversion plan.
Deciding whether equity release is a good idea requires careful evaluation of the pros and cons, considering your financial goals and personal circumstances.
While it can offer valuable opportunities to access funds tied up in your property, it is crucial to weigh the potential impact on inheritance, long-term interest accumulation, and eligibility criteria.
Seeking advice from a qualified professional, like us, to fully understand the risks and benefits associated with equity release is vital. With careful consideration and great guidance from our specialist equity release advisors, you can make a well-informed choice that aligns with your financial objectives.
Given the complexities involved in the later life mortgage range and equity release plans, it is strongly advised to seek independent mortgage advice from qualified experts, like ourselves.
An experienced equity release advisor can assess your specific situation, explore alternative options, and guide you through the process to ensure you make an informed decision.
If you feel ready to take the next step with us, we’d love to hear from you. You can telephone or book online to arrange a free, no-obligation consultation where we can discuss your later life/equity release mortgage options.
We’ll answer all your questions and recommend a way forward. We don’t need anything in the call other than your ages and your address. Evening calls are available to fit around any work or family commitments.