Borrowing in later life can seem daunting
Borrowing in later life can seem a daunting proposal but may be a necessity for a variety of reasons. We can help you and your family explore the options available to you, taking a sensible approach to releasing the equity in your home for a variety of reasons – home improvements, debt consolidation, capital raising and other purposes.
Equity release is a way to unlock the value of your property and turn this into a cash lump sum. This might sound an attractive option if you are facing a pension shortfall or need to meet an unexpected expense. You can do this in a number of ways if you are 55 years old and above and you don’t need to have fully paid off your mortgage to do this. Read our blog about what equity release is and how it works.
What can equity release be used for?
- Improving your home meaning you can live in it for longer.
- Paying off debts.
- Paying for help or social care at home.
- Providing financial assistance to your children and grandchildren.
Releasing equity can be via a lump sum or in stages via drawdown (which you will pay interest on) to provide an additional source of funds or income in later life.
A lifetime mortgage can cost more than three times what you borrow after 20 years, while some home reversion schemes demand more than 70% of your home’s value for just a 20% advance.
Mortgages for older borrowers
We are also finding that a number of mortgages are becoming available to older borrowers so you may find that taking out a mortgage on the property is a more cost-effective strategy or releasing extra cash by re-mortgaging to release equity.
When providing advice on equity release, we will discuss potential alternatives and make you, the consumer, aware that it will reduce the value of your estate and may impact upon the state benefits you are entitled to.
To learn more about equity release and find out if this is an option for you, please get in touch today.
*Please note: Equity Release may involve a lifetime mortgage (home reversion scheme). To understand the features and risks, ask for a personalised illustration.”