How to make sure that equity release is right for you: An essential guide. Image credit: Supplied
Instead, 1000’s of UK retirees use these methods every year to supplement their retirement income, benefiting from a vastly more comfortable retirement.
However, equity release does have its pitfalls, and it’s not the ideal option for all homeowners heading towards or already retired. Luckily, there are surefire signs that equity release is right for you. We’ve got the inside scoop. Besides, Jason Stubbs, an expert in equity release area is suggesting to start with reading the equity release company reviews by EveryInvestor to get acquainted with the players within this niche.
Equity release refers to a type of later-life financial product that gives older homeowners, 55 and above, the opportunity to unlock the cash tied to their almost fully or fully owned property.
No payments are required in the homeowners lifetime. Instead, the loan and accrued compound interest are settled when the last homeowner dies or is moved to a care facility. Furthermore, the homeowner (or couple) can live in the house, rent-free, for the rest of their lives.
While equity release is a fantastic financial solution that’s taking the UK retirement community by storm, it does have certain pros and cons that you’ll need to be made aware of before making any financial decisions.
Some of the benefits of equity release are that the money is tax-free, the Equity Release Council ensures that you’ll never owe more than the sale value of your home, interest rates are fairly reasonable, and you can use the money in any way you wish.
The disadvantages of equity release include reducing your inheritance, the interest on your plan often compounding quickly, and early repayment charges if you decide to end your plan before the stipulated agreement.
The secret to discovering if equity release is right for you and your family is by getting in touch with a whole market financial advisor who works in your area. Your adviser with guide you through the entire equity release process, firstly finding you the best plan options to aid your financial concerns.
In addition, your trusted financial adviser will talk you through all the risks of equity release, the benefits, and the alternatives you’ll be encouraged to consider. Equity release is a serious, life-long commitment, so it must never be done on a whim. However, your adviser will tell you if it’s a wise move under your circumstances.
In 2022, there are so many incredible resources on the internet to accurately introduce you to the world of equity release. Just be sure to consider reputable information channels and advise according to the Equity Release Council’s criteria.
Once you’ve read up on equity release and used an equity release calculator, research a financial adviser in your area and book your first consultation. A stress-free retirement could be in the cards.