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 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 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 in 2019 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 can it solve your financial worries?

Equity Release is really very 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 as you need or desire without having to move or sell your house.

So how does it work?

Essentially 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 interest added on can be repaid from the sale of your home when you either decide to downsize, go into long-term care or when you pass away.

How can I use the money?

However you wish! Most people who apply for Equity Release - a common example of this is a Lifetime Mortgage - use the money to fund home improvements, lifestyle enhancements or that dream holiday. Some desire cash to supplement their income, pay off debts or to help their children onto the property ladder.

The number and flexibility of plans on the market nowadays means we can easily find a plan to suit your very specific needs:

  • 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 pay back the loan in monthly installments, ad hoc lump sums or simply allow the interest to roll up and it is payable only when the property is sold.

So, the excitement of the New Year and your financial ambitions could indeed become a reality in 2019!

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 make 2019 the year that you 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 kevin.woods@therightequityrelease.co.uk

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

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