The issue of equity release has always drawn mixed reactions from financial advisers, media and other key stakeholders. There are those who maintain that using equity release amounts to tying a financial noose around your neck. Others are more positive about it and view it as a channel to financial stability in retirement years.
For those looking for a neutral opinion about low equity release rates with cashback.
Debunking the Myths
Taking Out an Equity Release Plan does not jeopardise your home Ownership Rights
– Many people have a conception that using equity release somehow inhibits or curtails the homeowners’ full rights of their house. Things could never be far from the truth. Equity release guarantees you the full rights of ownership to your home for the whole duration of your life.
Market Fluctuations Will not affect your Equity release plan
– The question of what would happen in case the real estate market takes a dive remains perturbing to many people. Market fluctuations will not actually result to the homeowner owing more than the value of their homes.The truth is that all providers of equity release pledge to a ‘no negative guarantee’ which ensures that no debt will ever be left on the property. You can use our online equity release calculator to calculate the value of your property.
Equity Release Will Deny my heirs an Inheritance
– 67% of the people believe that by releasing equity on your property, you are essentially denying your heirs an inheritance. The truth is that once the homeowner passes away, the property will be sold, and the providers will only take as much as there are owned and hand the rest of the amount to the heirs.
You Won’t be able to move houses
– Equity release does not tie you to your property. You can conveniently move your equity release to another valuable and suitable property without attracting any financial penalty.By calculating the value of your new property, you can estimate whether it guarantees you the same amount of equity release you were getting from your previous property.
Equity Release is Illegitimate and Unregulated
– Like any other business, there is legitimate business entrepreneurs and illegitimate cons. Choose to deal with a ERC (Equity Release Council) licensed equity release and you will be safe.
Who is eligible for equity release?
After debunking the above myths, the question that many people ask is “am I eligible to receive low equity release with cashback?”
Here is a quick checklist for eligibility to receive Low equity release rates with cashback:
- Only available for people above 55 years of age
- Minimum property value must be £60,000
- Property must be in England, Wales, Scotland or Northern Wales
- If in a leasehold property, your must have, in most instances, at least 75 unexpired years on your leasehold
- Your equity release amount must be able to cover your remaining mortgage. Use our online calculator to calculate how much equity release you are eligible for.
It is also important to note that some properties such as houseboats, mobile homes and park homes do not qualify for equity release.