Many retirees turn to equity release plans as an easier way to raise more cash to fund their retirement years. You can speak directly to an expert prior to making a firm decision, since these plans are not always the suitable for everyone. Here are some critical points that you can consider prior to making any decision and questions that you should ask your lifetime mortgage adviser.
Discuss the alternative ways of raising the money
An equity release scheme will reduce the property’s value, with a few exceptions, hence if you are not comfortable with this, then the plan may not be the best idea for you. You may consider downsizing to a smaller property however many people do not like moving out of the home that they are used to, and the one they have brought up children in for the sake of downsizing.
Do you have potential state benefits?
Depending on your current circumstances, you may be a qualifier for additional state help, meaning that there is no need for you to withdraw funds from your home. As you compare the different equity release schemes in the market, the advisor will bring out some of these questions and help you make a wiser decision. The last thing you want is to lose income elsewhere.
Will you qualify for equity release?
You need to understand that not all people who own a property will qualify for equity release, hence do the comparison research, and confirm that you do qualify. For one, you must be aged 55 – 95 years and own a home a worth at least £60,000, or more for some equity release providers. There is further criteria each company uses, hence you must always check eligibility before submitting an application, as you do not want to be wasting hard earned money on a valuation fee.
Are there equity release plans that fit your needs?
There are various plans that you can explore & are provided by SHIP registered companies such as Stonehaven, Just Retirement and Aviva. Such companies have access to an equity release calculator to determine how much you can release from your home. Interest rates vary depending the lender concerned & with some companies can be affected by age. The property value is the key determinant as to how much as a percentage of its value you can get.
If you do not understand how equity release works, you need to first research the subject which can be undertaken online & requesting a free guide to equity release. However, if you are fully aware of what equity release entails, then go ahead and submit an application to enable you to enjoy your retirement lifetsyle.
