What is Equity Release
What is Equity Release?
Are you over 55 and looking some extra cash, are you wanting to make home improvements, or even want to clear some debt you may have? If this is the case Equity release may be the answer.
Equity Release is a way of supporting yourself later in life, by unlocking tax–free cash from the value of your home, without having to move out. You might want to renovate your old kitchen or bathroom to what you’ve always wanted, or even take yourself away on a trip of a life time. Many use Equity Release to secure a comfortable retirement, by putting their home at the centre of their retirement plans
But before you’ve got your flights booked or house renovated mentally!, it is important to understand the costs and risks of a lifetime mortgage.
1. It’ll reduce the amount of inheritance you can leave, and may affect your tax position and access to welfare benefits.
2. Equity release allows the over–55s to borrow against the value of their home, but the loan is only repaid when the house is sold and the owners move into care, or pass away.
3. Be careful of hidden fees or charges that companies may not disclose initially
This being said, Equity Release is a lifeline to many with debts or shortfalls in the income from their pension savings, and if any of these issues may concern you, why not call one of our expert Independent Financial Advisers today to book a FREE Consultation.
In the first instance speak to Simon at our Ballyclare office, on 028 9332 2822