Considering Equity Release ?
For many people, their property is their biggest asset. Unlocking this value via equity release is an option being considered by an increasing number of over 55’s to help financially plan for retirement.
Don’t Fall For The Myths About Equity Release
Equity release has long been the subject of many a myth, from it not being safe, to possibly losing your home.
Although interest in equity release has soared in recent years, many people still have misconceptions about what equity release is and how it works.
These myths have prevented many potential customers from considering equity release as a financial solution in later life.
With Lifetime mortgages interest rates must be fixed or, if they are variable, there must be a cap (upper limit) which is fixed for the life of the loan.
You must have the right to remain in your property for life or until you need to move into long-term care.
You have the right to move to another property.
The product must have a no negative equity guarantee.
You have the right to make penalty free payments.
Equity release is the umbrella name for products that provide consumers with a way of releasing the wealth tied up in their property, without necessarily having to sell it and move to another home.
There are two main types of equity release and both are regulated by the Financial Conduct Authority.