Equity Release Products
There are many reasons why people choose to use Equity Release. The past few years have seen many industry pundits predicting the entry of major mainstream lenders into the equity release mortgage market.
Equity Release Products are a way of converting some of the value that is tied up in your home, into money you can use now for whatever your requirement may be.
You do not pay monthly amounts back with Equity Release Product. Instead, your debt and interest (together with any fees that you did not ay up front at the start) build up or compound over time. When the loan ends you, or your estate, must repay what is owing, usually out of the proceeds of the sale of your home.
Many people are turning to equity release as a means of support in their retirement, or even to escape the IHT threshold.
Equity release products can be expensive and inflexible if your circumstances change in the future. They can be complex and involve anticipating your long-term needs, including how long you think you might live and what your health or care needs might be in the future.
This Equity Release checklist will help you think about what your needs are now and in the future so that you can check whether an equity release product will be right for you.
Some other options to think about are:
Selling your home and moving somewhere smaller
Living off your current income and getting an equity release product further down the track to preserve your nest egg.
Making sure that you have taken advantage of all your State Benefits
Check for more Alternatives to Equity Release Products
Your house is probably your most valuable asset and it’s also your home. Make sure you shop around and get good independent legal and financial advice if you take up any of the Equity Release Products available.
Contact me if you wish to see an Equity Release Advisor and I’ll recommend a locally based professional to help you. There ’s no fee to pay me.