If you are a regular TV viewer you will not have failed to notice the numerous TV commercials promoting the benefits of equity release. You may also have read headline grabbing articles in national newspapers of the potential pitfalls of releasing money tied up in your home.
If you’ve lived in your home for a long time, you’ll have probably seen the value of your property rise. Equity is the market value of your home, less any outstanding mortgage or other debt secured against it.
‘Equity release’ means getting some of this money out of your home, without having to sell up and move out. So that you can continue to live in your own home for the rest of your life or until you move permanently into long-term care.
Is equity release right for me?
If you’re thinking about equity release, it’s a big
decision that needs careful consideration as it will reduce the value of your estate. What many people do not know is that it may also directly affect your state benefit entitlement.
Any responsible equity release provider will want to help you make the right decision and see whether equity release is the right choice for you personally. They should lay out any potential negatives to you in taking out equity release, as well as all of the potential benefits that equity release may offer to you as an individual.
An equity release specialist should also be able to answer any questions you have and cover such things as:
Using current savings or investments instead of Equity Release.
Making sure you’re claiming all the state benefits you are entitled to.
Alternative ways to access the money you need.
Understanding that outstanding mortgages need to be repaid upon completion of taking out a product.
Ultimately, taking out equity from your home is a big decision and one that should not be taken lightly. Therefore it is in your own best interest to seek out professional advice from an Independent Financial Advisor or Equity Release specialist, before taking out any financial equity release product.