5 common myths about Equity Release
PUBLISHED: 09:59 14 July 2016 | UPDATED: 13:43 14 July 2016
Tap into the value of your home with equity release products arranged by the Poole Townsend in Cumbria.
Money can be tight during your retirement years if you don’t have an adequate or reliable source of income. While you may have enough to cover your daily needs, there is often little left over for things like home improvements, helping out with your grandchildren’s education, or taking exciting holidays abroad. Before having a clear out to get your hands on some much needed cash, consider unlocking some of the value of your property by speaking with an expert financial advisor. If you are over 55 and own a home worth at least £75,000, equity release products like lifetime mortgages or home reversions are creative solutions that allow you to access money from your home without having to move. Though equity release products have received some bad press in the past, take a look at these 5 common myths that need setting straight before you make a final decision.
“I won’t own my home anymore”
Many people believe that taking out a lifetime mortgage on their home will mean the home is no longer theirs, but this simply is not true. You will retain legal ownership of your home for life or until you move into long-term care as long as the property is your primary residence.
“I will still have to make monthly mortgage payments”
Actually, no regular payments are ever required. You may choose to make interest payments if you like to help reduce the impact on your estate, but the loan is repaid in full when you die or if you go into long-term care.
“My family will be stuck with massive debt after I’m gone”
As an Equity Release Council standard, equity release products come with a “no negative equity guarantee”. This means that when your home or property is sold and the agents’ and solicitors’ fees have been paid, your loved ones are not liable for any outstanding costs, even if the amount left over is not enough to repay the loan to your provider.
“There will be nothing left for my children’s inheritance”
While equity release products will reduce the amount of inheritance you can leave, you have the option to safeguard a percentage of your home’s value with inheritance protection. This may, however, reduce the amount you can borrow.
“We will be stuck in this home until the debt is repaid”
Loans arranged with members of the Equity Release Council are portable, so you can take your lifetime mortgage with you when you move somewhere new. Many factors will need to be taken into account, such as the value and type of house you are moving into, but an expert financial advisor can help you determine the best solution for your situation.
Sorting out the complexities of equity release products can seem impossible, so enlist the assistance of someone who knows how to make sense of it all. The qualified professionals at Poole Townsend steer away from technical jargon, focusing more on providing sound advice and personalised services for each and every client. With over 130 years of combined experience, their friendly team has helped countless families across Cumbria with a wide range of financial needs, so call 0800 389 2939 to find out more information or visit www.pooletownsend.co.uk