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5th April 2019

Equity Release – A Modern Solution?

The current climate of low savings rates, poor pension payouts and inflation is seeing more older people taking out equity release mortgages. We live longer and our pension returns are less. Hence the number of people borrowing money from the wealth locked up in their home is expected to soar.

Equity Release – Getting independent advice

This is absolutely vital and The Finance Roome can help you with this. Taking out an Equity Release plan involves both you and your beneficiaries. We can not only help you to find the best deal but also ensure you consider the effects on your heirs and any inheritance you would like to leave. If you would like to know more, just drop Ellen a line. Or call us on 01242 226353.

Equity Release – The benefits

Clearing unsecured debt is common – and a growing area for many. Buying a house another – clients can take out an equity release plan in order to fund any shortfall on a property purchase. Age can negate choice in the mainstream mortgage market. Many clients use the proceeds to purchase a second or holiday home abroad or in the UK.  Retiring in search of sunshine is once again becoming a popular choice. As long as you remain a UK resident for six months of the year this could be an option for you.

 

The struggle for First Time Buyers these days is well documented. Thus it is becoming more commonplace for parents and/or grandparents to help first time buyers to get onto the property ladder. This can be done by using an equity release plan to gift the deposit.

Equity Release – Less known benefits

Less well known options include using equity release to pay off an outstanding interest only mortgage. Again this is very topical at the moment. The number of older clients with interest only mortgages and no repayment vehicle is alarming.

Retired renters who might have been renting property all their lives can become home owners on retirement. Taking out an equity release plan on a house they are looking to purchase is an option. They would be able to avoid Stamp Duty and could benefit from the increased mortgage age limits offered by some lenders.

In conclusion Equity Release isn’t for everyone but it could well be a consideration for you end become a viable plan for your future.

 

 

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