New equity release product on market
It is always important to think carefully before raising funds through an equity release scheme due to the fairly prohibitive interest rates applied to these types of loans.
However, if you are over 60 and have a need to access funds, a new product on the market may be worth lo9oking at.
Insurer Partnership has made available a new equity release scheme which involves some reasonably straightforward medical questions being asked but which, depending on the results of those questions, and underlying health conditions, may allow a person with possibly worse health problems (and therefore life expectancy) to withdraw a higher proportion of equity from the property.
Th is scheme also has the potential advantage that interest on the loan does not need to be paid monthly but can be rolled up. Again, there are definite pro’s and con’s to this which should be carefully considered.
In terms of figures, the scheme might allow a 60 year old person with a potentially significant condition such as diabetes to borrow an additional 5-6% of the equity over and above the usual amounts of around 20% of the property value.