Is equity release a popular option?
Research from Age UK shows over 15.3 million British citizens are now aged 60 and above. Therefore, it’s no surprise that products, such as lifetime mortgages, are seeing a surge in popularity.
As per the reasons outlined above, they are a good way of providing yourself with a steady source of income, or ‘pension pot’, whilst at the same time allowing you to maintain the lifestyle you want through later life. As well as enabling you to pay for luxuries like a holiday, or home improvements, they can be beneficial for your health as they help you to pay for long term care.
Also, with the cost of getting on the housing ladder so high, a lifetime mortgage is a way for parents to assist their kids with buying their first home. For some, passing their estate on when they die is likely to be too late, and they want to help their children out now.
This solution enables them to, as they can give all or part of the loan amount obtained from their home to their children. However, before making this decision you should speak with your family and seek advice using the number below.
Is equity release a bad idea?
There are several advantages and disadvantages to consider, and it’s important to speak to an independent financial adviser (IFA) before making a final decision.
Recently, the lending criteria have improved and competition between providers has brought interest rates down. However, taking a lifetime mortgage certainty isn’t for everyone.
We would certainly recommend getting your questions answered by a specialist before you finalise anything. You can get some free advice and discuss things by calling 0800 953 3792.
Read about the equity release ‘pros and cons’ below