Understanding your circumstances is the best way of deciding whether Equity Release is right for you. Our advisers will give you all the information, facts and figures you will need to make an informed decision, they will help and assist you all the way through the decision making process.
A few points to consider when making the right decision:
- 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 make sure you choose the right plan to meet your requirements.
- 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 on the loan or choose to make monthly repayments, making the right decision based on your disposable income is imperative. Our advisers will help you understand and identify all the options available to you.
- Equity Release is a very good option but is not right in every case. Our advisers will assess your complete situation and advise on all options available to you. We will discuss with you alternative options such as unsecured loans, standard mortgages and downsizing to a smaller property to ensure these are not a more suitable option for you.
- Using an Equity Release scheme to repay other debts can help free up monthly income however, as the debts will potentially be spread over a much longer period of time you could end up paying a lot more for these debts. Carefully consider this before securing other debts against your property.
These are some of the options you need to consider when deciding if an Equity Release is the right option for you. There are many other things and this is where you would benefit from meeting with one of our qualified experienced advisers, we offer a free, no obligation to continue appointment. We will help assess your current situation and advise you on the right options for you and help you analyse all available options.