Have you thought about Equity Release?
Have you thought about Equity Release?
Are you over 55 and looking some extra cash? If this is the case Equity Release may be the answer.
What is Equity Release?
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.
What type of Equity Release plan are there?
There are two main types of equity release;
1. Lifetime Mortgage – this is the most common type of equity release, in this case you borrow money secured against your home. The mortgage is then usually repaid from the sale of your home when you die, or move into permanent residential care.
2. Home reversion plan – this is not as common, with this type of equity release – you raise the money by selling all or part of your home while continuing to live in the property until you die, or move into permanent residential care.
Be aware of the Risks!
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
Source: https://www.moneysavingexpert.com/mortgages/equity-release/
https://www.ageuk.org.uk/information-advice/money-legal/income-tax/equity-release/