Getting cold doesn’t give you a cold, carrots won’t make you see in the dark and saying ‘pineapple’ to someone doesn’t steal their sneeze (latter myth courtesy of my daughter).
We’re surrounded by myths all the time, mostly entertaining but often quite confusing. And, despite the fact that things have changed a heck of a lot, equity release is no exception.
So, as it’s not very helpful and very misleading to be surrounded by mis-information we thought we’d address some commonly held misconceptions about equity release. Today we’re looking at the top 5 equity release myths that we come across.
Myth number 1.
I’ll no longer own my own home
Releasing equity doesn’t mean handing over ownership of your home. With a Lifetime Mortgage (the most popular equity release plan) you still own your own home and live there until you die or move into full time care.
Myth number 2.
I’ll owe more than my house is worth
When you work with an Equity Release Council approved specialist like us, we will only ever recommend plans that come with a no-negative equity guarantee. This ensures that you will never owe more than the value of your property when it is sold.
Myth number 3.
I’ll have no inheritance left to leave my loved ones
The increasing flexibility in equity release plans means that you now have the option to protect a portion of your homes value to leave as inheritance for your family. In fact it’s partly due to this huge improvement in the flexibility of plans that has lead to such an increase in the popularity of equity release.
Myth number 4.
I still have a mortgage so I can’t release equity
You can still release equity when you have a mortgage, in fact, using your home’s wealth to pay off an existing mortgage or manage other existing debts is a very popular choice.
Myth number 5.
I’ll be burdened with monthly repayments
With a lifetime mortgage you are completely free from monthly repayments (unless you choose to make them). The interest on the equity you release is rolled up over time and paid back when your house is sold, when you move into long-term care or pass away.
So, just to clarify those busted myths:
You can release equity and still own your home
You’ll never owe more than your house is worth*
You can still leave an inheritance when you release equity
You can release equity when you have an existing mortgage
You’ll be free of monthly repayments
Laughter is the best medicine,
You’re not old, you’re vintage
And finally…You’re never too old to be young!
Okay, so the last three have nothing whatsoever to do with equity release but we thought we’d finish on a light note and we hope you like them.
If you’ve heard any Equity Release rumours that you suspect may not quite be the case then we’d love to hear from you.
Thanks for reading and please look out for more myth busting in future posts.
* Providing you use an Equity Release Council approved specialist like us!