Equity release to the rescue of the retired
Borrowing against your home is no longer seen as an act of desperation. In fact, it can be seen as a sensible approach to managing your finances in these times of lower pensions and longer life expectancy.
Despite past concerns, the modern equity release mortgage has many safeguards built in, such as a ‘no negative equity guarantee’ to ensure the mortgage amount cannot be greater than the value of your home.
You can also choose to protect a percentage of the eventual sale value of your home. This means that the percentage you choose to protect is guaranteed to be available to you or your beneficiaries in the future.
Put simply, equity release is a very effective method for releasing some of the money stored up in your home, without the need to move. How much equity you release depends on how old you are, how much your home is worth and how much you choose to borrow.
People take out Lifetime Mortgages for a variety of different reasons. Some people just need a little extra cash to supplement their pension whilst others may wish to gift their children or grandchildren a lump sum.
Entering into an equity release mortgage should never be considered without taking expert advice. If you would like a free and no-obligation meeting to discuss your options, please contact our Financial Services Partner, David Hopkinson.