Equity Release on the rise but be very careful

Bear in mind that a lifetime mortgage reduces the value of your estate, and it may impact your entitlement to any means-tested state benefits. As everyone enters into retirement in a different position, financially and personally, equity release products have been designed to be flexible so that your plan can be shaped around your requirements. Whether you choose a Lifetime Mortgage or a Home Reversion Plan, there are also numerous options available under each specific product type. A Financial Advisor experienced in providing Equity Release advice will help you to understand the differences between the available products and will recommend a solution most suited to your individual needs and circumstances. You can continue to live in the property and you will retain all legal ownership. This loan doesn’t require being repaid until you either pass away or move to different accommodation.

The equity release market has an image problem – just ask Rory Joseph , group director at JLM Mortgage Services, the mortgage protection network. how does equity release work can help unlock the equity tied up in their home – meaning they can achieve their objectives in later life. All customers taking out new plans which meet the Equity Release Council standards must have the right to make penalty free payments, subject to lending criteria. When entering into either of these schemes, you will need to consider the impact any received money will have on your welfare benefits, Capital Gains Tax, Income Tax and Inheritance Tax.

Enness has operated in the equity release market for several years, and the team understand current market trends and what these mean for you. In the current low-interest-rate environment, there is enormous liquidity in the lending market. Enness acts for many high-net-worth individuals who can have assets spread across the world and various forms of income, often in foreign currencies. Very often, high street retail banks won’t include these assets in affordability calculations. This can significantly impact how much sense it will make for you to borrow from these lenders and the finance packages that will be available to you.

“This is especially true as there is a significant shortage of the downsizer’s favourite, bungalows, which has pushed up prices and made the idea of moving to pay off a mortgage a pipedream,” he added. Joseph said demand has increased for equity release in recent years due to a number of factors, particularly with the cost of moving being so high. You can obtain personalised illustrations and submit new business applications through the portal.

10 Lifetime Mortgage Myths Busted by Holly Bennett Lifetime mortgages, a type of equity release, have evolved to be a flexible and safe way to access wealth from your property. It’s a major decision that needs lots of thought, but these misconceptions shouldn’t put you off. If your lender is a member of the Equity Release Council a lifetime mortgage should be portable, which means you can still move house. However, it can be complicated if you don’t have enough equity left in your existing home to fund the new purchase. There are other safeguards in place to protect people considering this type of loan. Firstly, most lenders only allow you to take out a product through an independent adviser who will consider your circumstances and guide you on whether equity release is a good idea and which lender and product is right for you.

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