New Year, New Resolutions… but what about your finances?

16th January 2019

We all love the excitement of a New Year and the thought that this year we can do it all differently – and this is particularly true when it comes to our finances. Many of us begin a New Year with the plan that this year we are going to be more financially ‘fit,’ clear our existing debts, and really understand where our finances are going every month. Yet often by February our old habits have returned, we are overspending, and more importantly, our existing debts remained untouched. We face another 11 months ahead of monetary anxiety until we decide to address our financial concerns once again next New Year.

But it doesn’t have to be that way because a solution to your financial concerns could be already sitting right there on your doorstep – wrapped up in your house. And it’s called Equity Release.

But what is Equity Release and how could it solve your financial worries?

Equity Release is simple. You have been paying your mortgage for years, month after month putting money into a fictitious ‘pot’ which is buying the very house that you are living in. No matter how ‘full’ the ‘pot’ is, that money is still yours, except that rather than looking like a bank note, it looks like bricks and mortar. So now, you have the wonderful opportunity to convert the bricks and mortar back into cash and use in a variety of ways without having to move or sell your house.

So how does it work?

With a lifetime mortgage, the most popular form of equity release, you take out a loan against the value of your property, knowing that you don’t have to pay anything back unless you choose to and you can stay living in your own home. The money and rolled up interest added on can be repaid from the sale of your home when you either decide to downsize, or the last surviving applicant dies or moves into long term residential care.

How can I use the money?

In a variety of ways! Most people who apply for Equity Release - the most common example of this is a Lifetime Mortgage - use the money to fund home improvements or that dream holiday. Some desire cash to supplement their income, pay off existing debts or to help their children onto the property ladder. The number and flexibility of plans on the market nowadays means there’s a variety of plans to meet your needs.

With a lifetime mortgage, you can access the money as a lump sum or use a draw down facility allowing you to access an agreed sum now and additional funds later.

You can make ad hoc payments, or simply allow the interest to roll up and it is payable, along with the initial loan amount, when the plan comes to an end typically when you die or move into a care home.

So, the excitement of the New Year and your financial ambitions could indeed become a reality.

Whatever the reason, if you are aged 55 + and own your own home worth over £70,000, then Equity Release could be a wonderful resource enabling you to become ‘financially fit.’

If would like to discuss your situation in confidence, and without charge or obligation of any kind, please contact Kevin Woods on 01489 454545 or contact kevin.woods@equityrelease.co.uk

Why not get in touch and see how we can help?

Equity release could be the answer to some of your financial questions. If you would like to know more about it, and see if it could be the right option for you, please book an appointment or request a call-back

Providers include

JUST
LV
ONEFAMILY
Pure Retirement
more2life

Equity release will reduce the value of your estate and may also affect your entitlement to means-tested benefits. You should always think carefully before securing a loan against your home.

Unless you decide to go ahead, our service is completely free of charge as our usual advice fee of 1.99% of the amount released would only be payable on completion of a plan, subject to a minimum advice fee of £1499.

A lifetime mortgage is the most popular form of equity release, and is a loan secured against your home that’s typically repaid when you pass away or go into long-term care.

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