The over-55’s are taking advantage of the strong competition between providers to secure the best in an ever growing range of equity release deals now available.
But, the Equity Release Council warns that: ‘greater choice means more people can adapt equity release to suit different circumstances and needs. The most suitable option might not necessarily have the lowest interest rate, which is why speaking to a regulated adviser is so important.’
The first priority is to establish why someone wishes to borrow money against their property, whether as a lump sum or in instalments, with lifetime mortgages the most popular and repayable when the borrower goes into care or dies.
Many of those approaching retirement, who have lived in the same property for a number of years, are only too well aware that they have substantial funds tied up in that property, and realising 25-30% of its value could be life-changing.
Consequently, there are many uses for equity release and there is an opportunity to:
- Clear existing mortgage debts;
- Enable people to give money to family whilst reducing the overall value of their estate and inheritance tax burden if they live for a further 7 years;
- Invest in home improvements, whether to adapt to environmental changes or add features to aid mobility in old age;
- Help family with the deposit needed for their own home purchase;
- Support young people through university;
- Buy a camper van, boat, or beach hut to enjoy with friends and family;
- Create a holiday fund to explore all those places one can otherwise only dream of visiting;
- Take early retirement; or
- Launch a new business.
The pandemic and working from home have made many of us re-think our lifestyles and priorities; with the right advice, equity release could be the solution to refreshing ambitions and aspirations.
Our trained advisers at Premier Equity Release have access to all the information to guide potential borrowers to the most appropriate deal to suit individual requirements. Give us a call on 0808 1691979.