Equity release enables you to use the money tied up in your home to provide
a tax free lump sum, to spend as you wish. Used wisely, it can help create a
more comfortable retirement for you and your family. Here are ten top tips*
to think about if you are considering equity release as a solution for your
retirement income needs.
Is it something that you need?
1. Consider all your options
Make sure you’re claiming all the state benefits due
to you. And explore the possibility of downsizing,
or renting a room.
2. Do your sums
Complete a budget planner. Work out what your
income requirements are, and also how this might
change in the years ahead.
3. Check with your lender
If you’re considering equity release to pay off an
interest-only mortgage, speak with your existing
lender to discuss all the options they can offer.
Think carefully before securing other debts
against your home.
4. For home improvements
Check to see if your local authority offers any
grants for the work required.
Is it the right solution for you?
5. Talk to your family
Discuss your plans with them. They may be
able to help, or support your decision to take
equity release.
6. Do your own homework
Unbiased information can be found via the Money
Advice Service Guide to Retirement (available to
download from moneyadviceservice.org.uk)
and on the Equity Release Council’s website
equityreleasecouncil.com.
7. Get expert advice
Don’t take for granted what others tell you
about equity release. Make sure you speak
with a qualified adviser who is a member of
the Equity Release Council, the
industry body for the equity release
sector, which ensures that all
members abide by the overarching
principles of the Council.
8.
Take independent legal advice
Which is the best plan for you?
9. Understand the differences
Consider the type of equity release you need.
An adviser will help you understand the difference
between home reversion plans (where ownership
is transferred to the lender at the outset), lifetime
mortgages, and any other options open to you.
Which features are best for you?
Don’t assume that the lowest interest rate is
necessarily the best. Any plan will have various
features, some of which will be more suitable for
you than others. (For instance, some allow you
to make monthly payments to avoid the interest
rolling up.)
Contact us now on 0141 280 1992 to find out more or use the Call Me back form at the top of the page and one of our experienced Equity Release Advisers will call you back. Impartial Equity Release Advice available, with face to face appointments if required, get in touch now.
This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration
*Source Just Retirement