Equity Release Myth Busters!

17th May 2021

The equity release market is experiencing significant growth nowadays as more and more people are seeing the benefits of releasing equity from their properties as a way to access the funds they need in their retirement years. However, many people are still held back by the myths surrounding the concept and are missing out on the wonderful benefits that a lifetime mortgage could bring to them.

Top 8 Equity Release Myths Busted!

Equity release is becoming more popular than ever and nowadays is seen as a viable way to boost later life finances.

What is Equity Release?

A lifetime mortgage, the most popular form of equity release in the UK, allows you to release a percentage of equity from your property in the form of a tax-free lump sum. There are certain criteria that need to be met to qualify, but once satisfied, and with the correct advice from a qualified professional like Kevin Woods, many UK homeowners aged 55 + may be able to release from their property the funds they need to fulfil their later life goals.

Unlike a regular mortgage, the capital plus interest accrued, need not be paid back until you either die or go into long term care, however, you do have the option to pay this back in regular instalments or lump sums if you choose.

But what about all those myths?

However, the equity release market has historically suffered from a negative reputation as a result of a general misunderstanding of the concept or from an audience of consumers who have been unfortunate enough to be misguided by the financial advice they received.

Thankfully, people’s understanding and perception of equity release is changing, and the industry has seen significant market growth and an ever-increasing demand for equity release products. Yet, there are still myths that need dispelling around lifetime mortgages.

Read more below and uncover the truth behind those myths.

Equity Release Myth Busters

Myth #1: I will lose ownership of my home.

With a lifetime mortgage, the most popular form of equity release, you will remain the owner of your home for as long as you want to live there providing you and your property meet the lending criteria of the equity lease provider.

Myth #2: I won’t be able to move home.

With most equity release plans, you can move home and transfer the loan to the new property as long as it meets the lender’s criteria. A partial repayment may be required on some plans.

Myth #3: My children will inherit my debt.

All equity release plans come with a NO NEGATIVE EQUITY GUARANTEE meaning that you will never owe more than the value of your own home once it is sold either upon death or when you go into permanent long-term care. This means that your children will not inherit any debt through equity release.

Myth #4: I can’t leave an inheritance.

With some plans, you can ring-fence a portion of your home’s equity to leave as a guaranteed inheritance for your children regardless of how much is outstanding on the loan when it is sold upon death or when you go into long term care.

Furthermore, when your property is finally sold, any money that is left after the loan, and interest accrued on the loan, has been repaid, can also be left to your beneficiaries.

Myth #5: The industry is unsafe and unregulated: I am going to be scammed!

Equity release is regulated by the Financial Conduct Authority (FCA). In 2012, the Equity Release Council (ERC) was established to provide consumer protection within this market. All members of the ERC must adhere to its high standards of conduct and practice.

A qualified equity release specialist, like Kevin Woods, will always act with your best interest in mind and only recommend taking out equity release if it is the right option for you. Alternatives to equity release including downsizing, or other forms of lending will be discussed before deciding if equity release is the right choice for you.

Myth #6: I will have to make monthly repayments.

When you take out a lifetime mortgage, you will have different options available to you when it comes to paying back the loan. You can choose to make monthly repayments, annual instalments or ad hoc lump sum repayments. Alternatively, you also have the option to never pay back a penny for the duration of the plan with the loan and accumulated interest being paid back to the lender when your property is sold either upon death or when you go into long term care.

Myth #7: I will end up owing more than the value of my home.

As stipulated by the ERC Statement of Principles, all equity release plans come with a NO NEGATIVE EQUITY GUARANTEE meaning that you will never owe more than the value of your home after it is sold, even if this is less than the amount owed. The guarantee only applies when you meet the product’s terms and conditions.

Myth #8: I can’t release equity if I have an outstanding mortgage.

You can apply for a lifetime mortgage on condition that you pay off your existing mortgage balance. This can be done either using the equity you release through a lifetime mortgage or by another means. You cannot have two mortgages as there needs to be only one charge against the property. If you use your lifetime mortgage to help repay your existing loan, your outstanding mortgage will simply be replaced by the new lifetime mortgage. You could view this in a similar way to re-mortgaging your property.

Things to consider

As your specialist adviser, Kevin Woods will explain the following:

• It is important to seek professional advice before releasing tax-free cash from your home to ensure that it is the right option for you.

• A lifetime mortgage is a loan secured against your home. It will reduce the value of your estate and may affect your entitlement to means-tested benefits.

• All the plans offered meet the Equity Release Council standards and come with several protections, including the no negative equity guarantee. This means you’ll never owe more than your home’s value.

• You should always think carefully before securing a loan against your property.


References:
https://www.keyadvice.co.uk/equity-release/mythbusters 17/05/2021
https://www.justadviser.com/documents/1313420-equity-release-mythbusting-infographic.pdf 17/05/2021

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

Working in partnership with

JUST
LV
ONEFAMILY
HODGE
Pure Retirement
Switch your equity release plan today and potentially save £1000s! - My Blog - Kevin Woods - Equity Release Specialist, Hampshire

Switch your equity release plan today and potentially save £1000s!

4th May 2021

When was your existing equity release plan last reviewed? With current interest rates as low as 2.8% AER, a switch could save you more than you may imagine.

Review, Switch and Save!

Do you have an existing equity release plan? Has it been reviewed recently by an expert? It could be time to look at your existing plan to see if you could switch to a cheaper deal.

Equity release plans in the past had generally higher rates than in today’s competitive market and you could find that your current plan may be costing more than it needs to be.

Nowadays, interest rates are extremely competitive and equity release plans could offer rates as low as 2.9% APR* This is good news if you already have a plan as you may be able to switch your existing higher interest rate lifetime mortgage to a new plan with a lower interest rate and potentially save yourselves £1000s in interest.

How does it work?

Essentially getting a new deal is the same as taking out an Equity Release plan for the first time. As your specialist advisor we would look at your age, health and current value of your property, and consider the actual value of your existing loan and any associated Early Repayment Charge (not all plans have this penalty included). Even if there is an Early Repayment Charge, overall it may still be cheaper to get a new loan.

We would then find a new plan at a lower rate of interest which would be used to pay off the original loan, and any Early Repayment Charge if applicable, and potentially allow you to release further funds from the value of your estate if desired. The new plan may also have additional benefits which did not exist in your old plan such as downsizing options, drawdown facilities, free optional repayment of the loan, free repayment on death of the first life, and inheritance protection.

Switching plans needs careful assessment and your current circumstances need to be taken into account which is why it is essential to speak to an experienced equity release specialist.

Talk to Kevin

If switching plans is something that you would like to consider please contact Kevin Woods on 01489 454545, or at kevin.woods@equityrelease.co.uk. for more details.

*The overall cost for comparison is 2.99% APR. Stated rates correct as of 6 April 2021. The actual rate that you receive will depend on your circumstances. https://www.keyadvice.co.uk/equity-release/change-your-existing-plan

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

Working in partnership with

JUST
LV
ONEFAMILY
HODGE
Pure Retirement
How to improve your home during isolation with Equity Release - My Blog - Kevin Woods - Equity Release Specialist, Hampshire

How to improve your home during isolation with Equity Release

7th April 2020

I don’t know about you but all this time at home struggling to find things to do has evoked a sense of dissatisfaction with my living conditions. Suddenly I am aware of the peeling paintwork on the windowsills, the chipped skirting boards and threadbare areas of the carpets which I hadn’t really noticed before. My house now seems shabby to me and I don’t like it. My living space seems smaller than I have noticed before, the bathroom needs a new shower and its high time we replaced those decaying fence panels in the back garden. Home renovations are now becoming my daily obsession in this period of instability and increased anxiety, when we are desperate to take charge of something in our lives at least; so let it be my house.

I am quizzed how I can practically make changes to my house right now with most businesses being closed for face to face business. But that’s not stopping me from making plans, big plans. I have already researched numerous ideas online and asked for quotes but then I hit another stumbling block: where can I find the finance to realise these plans? I think about a loan, or re-mortgaging the house but these forms of finance are usually based on income related criteria and my salary is modest to say the least and my husband retired last year.

Then I come across an article on Equity Release and suddenly the cloud lifts, and a sense of possibility pushes my dissatisfaction to one side with a great big nudge. Maybe I do have the finance to make this possible

I research advisors and find Kevin Woods, an independent and experienced Equity Release specialist and I give him a call. He is very easy to talk to and he explains the whole concept of Equity Release to me in a language I understand, and we discuss whether this is a good option for me. Kevin explains that Equity Release is simply a loan taken out against the value of your property, at a fixed rate of interest for the duration of the loan and will allow me to access a tax-free lump sum to use as I wish. Thankfully the main criteria for eligibility for this loan is to be a UK homeowner over 55-years old so we both qualify this minimum of criteria and I find out more.

We conduct all the enquiries, research and transactions over the phone as this is the only way most businesses can carry on these days but that isn’t a problem at all. Kevin knows what he is doing, he’s being doing it for years, and the whole industry is a well-oiled machined which continues to function remotely with maximum efficiency.

Kevin also explains that we do not have to pay back the loan unless we choose to as there is the option to allow the interest to roll up leaving the value of the loan to be taken from the property when we either die or go into long-term care. I feel more comfortable making regular interest payments, so Kevin choose as product which includes this facility. We are pleased to learn that the amount of equity we can release is more than we need at the moment so Kevin suggests that we have a drawdown facility which means we take a loan for what we need now, and if we want more in the future we ‘drawdown’ from our given maximum when we need more money.

I am impressed, and relieved. In this period of physical immobility, where personal progress seems to have been frozen, I am still able to make real plans for my future. When all this is over, and we can be liberated once again, I will already have the cash in my account to allow me to phone those contractors, currently stuck at home with stagnant businesses, and instruct them to come and change my physical world to how I want it to be. I deserve this at the very least after this period of austerity, anxiety and penance.

My dream home, my released life and my place of renewed freedom will in fact become a reality thanks to the equity that Kevin Woods will help me release from my property.

Good news at last – now isn’t that refreshing for a change:-)

If you would like to find out if Equity Release is the right option for you, contact Kevin Woods on 01489 232036, or at kevin.woods@equity.co.uk for a free consultation without commitment or obligation of any kind.

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

Working in partnership with

JUST
LV
ONEFAMILY
HODGE
Pure Retirement
You may be on lock down right now, but your equity is not! - My Blog - Kevin Woods - Equity Release Specialist, Hampshire

You may be on lock down right now, but your equity is not!

24th March 2020

If you are on lock down at home, why not consider releasing some of the equity in your property and access funds to pay your bills, fund long standing debts or even use to by online home improvements? And all from the comfort of your own home..

Now, more than ever before, many of us are worried about how we are going to financially survive the months or maybe years ahead.

The ongoing spread of the new coronavirus has become one of the biggest threats to the global economy and financial markets.

People fear losing their jobs, businesses collapsing and face drastic cuts in their available finances.

Amidst this turmoil we all still have bills to pay, debts to address, mortgages to fund. Yet when most of us are confined to our homes, how can we generate the income we need to survive?

Well, the good news you have been waiting to hear is here: if you are a home owner aged 55 +, you could release some of the equity in your house in the form of a Lifetime Mortgage and access a tax-free lump sum giving you the finance you need for now and the years ahead.

How does it work?

The most common for of equity release is a Lifetime mortgage, which is a loan taken out against the value of your property at a fixed rate of interest for the lifetime of the loan. The good news is that rates are at the lowest they have ever been, and can be as low as less than 3% interest. You can choose to access the money as a tax-free lump sum or opt for regular instalments of the cash similar to receiving a monthly salary. This could be a life saver in these turbulent times when salaries have been cut and outgoings remain high.

How can I pay back the loan if money is already tight?

You don’t have to! Yes, that’s right. You have to option of allowing the interest to roll up and the value of the loan is taken from the sale of your property when you either die or go into long term care. This gives you the peace of mind of having access to funds when you need them without having to worry about paying them back, particularly during this period of financial insecurity. Of course, if you prefer to make regular instalments to pay back the loan, that is also an option – the choice is yours. But either way, the funds are available if you want to release the cash from your property.

Access the funds from the comfort of your home.

We are very aware of the risk of interacting with people during this crisis and for that reason, our whole service has been converted to telephone and postal transactions with no face to face appointments needed. From initial consultation, to the release of the funds, you can stay in the comfort and safety of your own home and just wait for the money to arrive in your account.

If you think that Equity Release could save you from financial crisis during this period of unprecedented instability, please phone Kevin Woods on 01489 454545, or via email on kevin.woods@equityrelease.co.uk for a free consultation without commitment or obligation of any kind. This could be the most secure thing you will do for yourselves in the months ahead.

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

Working in partnership with

JUST
LV
ONEFAMILY
HODGE
Pure Retirement
What you can do to help prevent the spread of the Coronavirus and keep yourself safe? - My Blog - Kevin Woods - Equity Release Specialist, Hampshire

What you can do to help prevent the spread of the Coronavirus and keep yourself safe?

18th March 2020

Although we are all very aware of the presence of the COVID-19 virus, taking additional precautionary measures to help prevent the spread of the virus is vital.

How you can help reduce the spread of COVID-19 (source: Public Health England)

1. If you have been in contact with someone with coronavirus or have returned from an affected area identified by the Chief Medical Officer as high risk and you are feeling unwell with a cough, difficulty breathing or fever, stay at home and use the NHS 111 online coronavirus service or call NHS 111.

2. Wash your hands more often than usual, for 20 seconds using soap and hot water, particularly after coughing, sneezing and blowing your nose, or after being in public areas where other people are doing so. Use hand sanitiser if that’s all you have access to.

3. To reduce the spread of germs when you cough or sneeze, cover your mouth and nose with a tissue, or your sleeve (not your hands) if you don’t have a tissue, and throw the tissue away immediately. Then wash your hands or use a hand sanitising gel.

4. Clean and disinfect regularly touched objects and surfaces using your regular cleaning products to reduce the risk of passing the infection on to other people.

In these challenging times, it is important that we all look after each other. We must be particularly vigilant of the sick, vulnerable and elderly and support them as much as we can, including the need to keep ourselves strong and well.

At Kevin Woods we will endeavour to help you in whatever way we can and we are always here to offer support and advice, as far as possible, to all our clients and their families.

Keep safe everyone

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

Working in partnership with

JUST
LV
ONEFAMILY
HODGE
Pure Retirement
Can I use Equity Release to buy a new home? The simple answer is ‘Yes!’ - My Blog - Kevin Woods - Equity Release Specialist, Hampshire

Can I use Equity Release to buy a new home? The simple answer is ‘Yes!’

9th March 2020

Despite popular belief, Equity Release is not only for raising money against your current home. It can be used to help you purchase a different property and if needed give you the money you need to carry out any necessary or desired renovations.

Many people are surprised to hear that if you choose to release equity from the home you live in now, you can use the money you unlock from that property to help you buy a different home. Despite popular belief that you have to stay in the home you release the money from, Equity Release is becoming an increasingly popular way for over 55s homeowners who want to move to a new house but don’t have all the funds to do so. You simply transfer the equity across to the new property to assist the purchase.

If you are not familiar with a Lifetime Mortgage, the most common form of Equity Release, it is a loan secured against your property, for an indefinite term, at a fixed rate of interest for life. The property it is secured against can be your current home, or a new house you wish to purchase.

To illustrate this, here are some real-life scenarios from clients:

Relocating from overseas and buying a new UK property

A couple in their 60s, who had sold their property in France to move back to England, wanted to buy a house in the South West. Unfortunately, they did not have enough money from the sale of their overseas home combined with their savings to buy their new dream home in the UK. They decided that in order to find the funds, they would release equity from the new home they had not yet purchased to enable them to buy it.

This couple understood the concept that Equity Release is very similar to a regular mortgage but rather than being based on affordability criteria, it is a loan to value against their new property. They have chosen to pay back the interest in regular installments like traditional mortgages and will very soon be moving into their new dream forever home, thanks to the funds Equity Release has given them.

Downsizing to a home in need of improvements

A couple in their later 60s recently retired and wanted to move out of Greater London. They still have a mortgage but would like to get rid of it, as the monthly payments are a bit of a burden on their new pension income. Their current home should sell for £1.6million and they found a country cottage for £1.2million. The £400,000 difference is enough to repay their mortgage, cover the stamp duty and absorb all the moving costs. But the cottage could do with some modernisation and some new wiring.

A Lifetime Mortgage allows them to raise money for some immediate improvements without having to worry about monthly repayments. It also provides them with a ‘Reserve’ they can draw down in the future if they find other things that need doing.

As you can see, there are so many options available to you with a Lifetime Mortgage. Some choose to pay back the interest on a regular basis; others choose to let the interest roll up so they don’t have to make any monthly repayments leaving the interest and the loan to be paid off when the house is finally sold. The beauty with Equity Release is that there are so many products available on the market that there is sure to be one to suit your personal circumstances.

If you are interested in using Equity Release to purchase a new home, it is important that you speak to an experience qualified specialist like Kevin Woods. Firstly, Kevin will advise whether Equity Release is right for you, then he will work tirelessly to find the best product on the market to fulfil your personal, financial and lifestyle needs.

Contact Kevin now on 01489 232036, or at kevin.woods@therightrequityrelease.co.uk for a free consultation without fee or commitment of any kind.

Your dream home could be simply a phone call away.

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

Working in partnership with

JUST
LV
ONEFAMILY
HODGE
Pure Retirement
The secret’s out! You can clear your existing debts using Equity Release - My Blog - Kevin Woods - Equity Release Specialist, Hampshire

The secret’s out! You can clear your existing debts using Equity Release

10th February 2020

Ssshhhh…..this could be the best kept secret you will hear this year! At last, a way to clear your existing debts that could be available to UK homeowners aged 55+ NOW!

Nobody plans to be in debt. Nobody wants to have unpaid bills keeping them up at night. But when you are faced with mounting bills to pay and no means to pay them back it is difficult to know what to do and more importantly, who to trust.

Finding the finance to pay back your debts can be tricky: many lenders will look at your current income, credit history and eligibility to repay the loans and if they feel there is a risk you will not be able to repay the loan, they may reject your application or charge an increased interest rate.

This is where the option of using Equity Release could be the best kept secret you have ever heard and could provide a tax-free lump sum to clear your credit cards debts and loans.

So how does it work?

Equity Release often comes in the form of a Lifetime Mortgage and is a loan secured against the value of your property. Your property has a value and is finance in the form of an asset, as opposed to finance in the form of available cash from a bank account for example. Unlocking the value of your property’s asset can release the cash you need to pay off any existing debts you have that you can not otherwise finance. Imagine the relief and freedom you will feel when those troublesome debts have finally gone!

Who can apply for a Lifetime Mortgage?

If you are a homeowner with a property worth at least £70, 000, and aged over 55 then you can apply for a Lifetime Mortgage. That’s all! The eligibility criteria is far less stringent than most lenders:

• NO credit checks

• NO salary-based criteria

• NO monthly repayments to meet if required

How much can I release?

This depends on the value of your property, your age, your health and your lifestyle. Typically, the older you are and the higher your property value, the more money you can release.

Do I have to pay back the loan?

No….but you can if you want to. If you would like to repay the loan you can choose to make regular monthly payments, or annual payments of the original loan plus any compound interest. As with any mortgage, early repayment charges may apply but not always.

Alternatively, you can choose never to repay the loan and allow the interest to roll-up, with the final value of the loan being taken off the value of your property when you either die or go into long-term care.

The important point to remember is that you are in control of your finances and you choose the option that suits you and your financial plans the best.

Mr and Mrs Allen chose to release equity from their property to pay back off their interest-only mortgage and have never looked back. ‘The financial Freedom Equity Release has given us has been a lifesaver. It’s what asset release is all about.’

So, don’t let 2020 be another year of financial worry - use the value in your property to repay your loans and unlock the secret to greater peace of mind in 2020.

If you are interested in releasing equity from your property, contact Kevin Woods on 01489 454545 or kevin.woods@equityrelease.co.uk to discuss your situation in confidence without fee or obligation of any kind.

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

Working in partnership with

JUST
LV
ONEFAMILY
HODGE
Pure Retirement
Find out how the real evidence about Equity Release could help you move forward with your life - My Blog - Kevin Woods - Equity Release Specialist, Hampshire

Find out how the real evidence about Equity Release could help you move forward with your life

29th January 2020

How often have we let FEAR stop us from moving forward with our lives, from making a financial decision that could change our lives for the better if only we were brave enough to find out how?

When it comes to our finances we are naturally cautious. We are fearful of making a wrong decision, we don’t always trust the advice we are given, and we have stories we have told ourselves about something bad that might happen if we get involved with certain financial products.

A degree of caution can be helpful, but misinformed decisions about products that could actually be beneficial to you is unfortunate.

Some people are misinformed about Equity Release - which in simple terms is a form of loan - and fear the scaremongering stories from the past.

Equity Release nowadays is innovative, safe, regulated, accessible, and for many people has been a life changing gift.

o You retain ownership of your home

o You are advised about different ways to pay back the loan to suit your needs

o You will never owe more than the value of your property

o You can guarantee an inheritance for your beneficiaries

False Evidence about Equity Release could be stopping you from unlocking the wealth locked up in your home, and accessing the money you need to make those big life changes

  • Go on a luxury holiday
  • Buy a new car
  • Renovate the house
  • Clear your debts
  • Pay back your interest-only mortgage
  • Gift the children
  • Supplement your pension income

Equity release is simply a loan taking out against the value of your property. Your property serves as a guarantee to the lender that you have the facility to pay back the loan from the value of your house.

The beauty of Equity Release - or a Lifetime Mortgage as it is commonly referred - is that you can choose to pay back the loan, pay back the loan and the interest, or simply let the interest roll up and the value of the loan is taken from your estate when you either die or go into long-term care. Better still, the interest rates have never been so low so now is the perfect time to consider releasing some of the wealth locked up in your property to give you more money to spend on whatever you like.

For many people taking out Equity Release has been a life saving decision which they would not have been able to make had they let their fear stop them from finding out more.

It is vital that you seek advice from a professional such as Kevin Woods who can assess your situation and recommend the best plan for you, if he feels that taking out Equity Release is your best option.

Don’t let fear about something you don’t know is going to happen stop you from finding out how this pathway to financial freedom can really change your life for the better….if only you allowed it to.

Contact Kevin Woods on 01489 454545 or at kevin.woods@equityrelease.co.uk for a free consultation with obligation or commitment of any kind.

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

Working in partnership with

JUST
LV
ONEFAMILY
HODGE
Pure Retirement
Flexible Options with Equity Release - My Blog - Kevin Woods - Equity Release Specialist, Hampshire

Flexible Options with Equity Release

27th September 2019

There are many reasons why having a flexible body is essential to our health and well-being. There are also many reasons why flexibility in our finances is equally beneficial. Thankfully, nowadays the Equity Release market has developed to such an extent that there are so many flexible options available with the features they offer that any plan you choose will leave your finances in the best of health!

Flexible Finances with Equity Release

Equity Release products have never seen such substantial development in the features they offer in response to customers’ demands for greater flexibility and choice. With almost 300 options available¹, the chances of finding a plan to meet the diverse social and financial needs of each individual is greater than ever before.

The Equity Release advisers’ tool-kits have been reloaded with gizmos and gadgets and they are now better equipped than ever to find a product for even the most demanding of situations. Take a look at what is now on offer to our clients:

Equity release product options and features²

Product options with this feature – August 2018Product options with this feature – August 2019Annual change (%)
Sheltered/age restricted accommodation42155269%
Interest-serviced (regular interest payments)2281268%
Downsizing protection63129105%
Inheritance guarantee519688%
Draw-down facilities478887%
Voluntary/partial repayments with no early repayment charge9917880%
Fixed early repayment charges7511655%
Regular income payments*016n/a
Total product options126287128%

Source: product data supplied by Key, August 2019
*Products offering the regular income payments feature were introduced to market January 2019

Regular interest payments

Many clients wish to reduce the build-up of interest by making regular payments either in part or in full. Even better, if they are no longer able to continue making these payments, they can easily switch to a roll-up option (allow the interest to ‘roll-up’ instead) at any time, with no risk of repossession of their house at any point.

Sheltered/ age restricted accommodation

Historically, these types of housing were excluded from many Equity Release products, yet client demand today is so great that there are now more plans that enable clients living in these types of housing to release equity from their properties and provide them with the finance they are looking for.

Downsizing guarantee

In later life, the desire to downsize to a lower value property is a common choice and more plans nowadays enable you to either repay the loan when you move with no early repayment charge, or transfer the loan to the new property.

Inheritance guarantee

A popular feature which enables you to ring-fence a proportion of the property’s value to leave as a guaranteed inheritance for your loved ones.

Draw-down facilities

The ability to withdraw from a maximum agreed amount (based on the value of your property) in stages rather than taking out the maximum allowance in one go means that the interest in only applied when the additional funds are withdrawn. This keeps costs down and is a feature of many plans nowadays.

Voluntary repayments with no early repayment charge

If reducing the loan over time and minimising the build-up of interest is important to you, this feature is essential in the plan you choose. The ability to make ad-hoc repayments – normally up to 10% of the initial loan per year – with no early repayment charges – is now more readily available on many plans.

Fixed Early Repayment Charges (ERC)

If you wish to repay the loan during the fixed period when a charge will be issued (typically 5 – 15 years), this fee will be at a pre-determined fixed rate and will decrease on a sliding scale. When this fixed period comes to an end you can repay the loan without any penalty. In this way you are able to financially plan for any additional fees.

*not all plans offer a fixed ERC: some are based on ‘Gilt yields’ at the time of repayment. Your adviser will make you aware of this feature if it is on your chosen plan.

Regular income payments

If you wish to supplement your pension income, or boost your finances on a predictable monthly basis, this feature enables you to release your funds in regular monthly payments rather than taking it out as a lump sum.

Lowest rates of interest ever

At a record low interest rate of 4.91%³, the plans on offer nowadays are at their most competitive. More than half of the plans offer a rate of 5% or less, and 21% of the products offer rates at 4% or below¹. More importantly, these rates are fixed for the duration of the loan enabling you to manage your finances for the future.

Equity Release - more popular than ever

More and more people are seeing the benefits of releasing equity from their property to access funds for lifestyle choices or necessities. The use of housing wealth to support later life financial planning, supplement inadequate pension funds, provide essential finances (for medical bills or home renovations for example), or finance luxury expenditures is more popular than it has ever been. With interest rates at their most competitive ever, no wonder £1.85bn in housing wealth was released in H1 2019 by homeowners 55+ in order to respond to their financial needs¹.

Should you wish to benefit from the plethora of options available for releasing the equity from your housing wealth, it is more important than ever that you seek professional advice from a specialist who is aware of these ever-changing features of the plans available. As an Equity Release Specialist with over 25 years working in Financial Services, Kevin Woods is an expert who strives to find the most suitable plan for his clients from the wealth of options continually available. Should Equity Release be of interest to you, call Kevin Woods on 01489 454545, or email kevin.woods@therightequityrelease.co.uk to discuss your situation without charge or obligation of any kind

¹ Equity Release Market report: Equity Release Council Autumn 2019: 24 September 2019
² product data supplied by Key, August 2019
³ As of July 2019

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

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Use Equity Release to buy a holiday home abroad! - My Blog - Kevin Woods - Equity Release Specialist, Hampshire

Use Equity Release to buy a holiday home abroad!

15th August 2019

Croissants for breakfast; tapas for lunch; gelato whilst watching the sunsetting on the Mediterranean coast……..owning a holiday home abroad makes this a typical day for an Equity Release customer who has released the wealth in their property to buy their dream home in the sun.

Do you dream of buying a ‘Place in the Sun?’ A holiday home on the sunny Spanish coastline, or a countryside villa in the pristine Swiss mountains? By releasing some of the equity in your property this dream could easily become a reality and could be more affordable than you think.

Last year the number of people releasing equity from their property to fulfil lifetime dreams and ambitions totalled almost 83,000, unlocking a healthy £3.94bn from their housing wealth*. The reasons for releasing these funds vary significantly from one homeowner to another - home improvements, clearing debts, gifting relatives onto the property ladder, funding care costs – and buying a holiday home in the sun is becoming an increasing popular choice amongst clients wishing to access this wealth.

A holiday home in the South of France

In fact, this is exactly what Mr and Mrs Birrell of Southampton are planning to do later this year after deciding to release a tax-free lump sum from their house to enable them to buy a property outright in the French countryside region of ‘Nouveau Acquitaine.’ Since her early 20s, Emma Birrell has held onto her dream of owning her own ‘Pied-à-terre’ in the beautiful French countryside and relive her days working as an au pair in a French family. ‘The aroma of freshly baked baguettes, the heady scent of an early morning espresso, the familiar clicking of the cicadas in the surrounding landscape fills my heart and soul with a nostalgic comfort that I want to be able to experience every day again. Recent life events have made Emma realise that life is precious – ‘Live in the present, live life to the full, life is too short - that has become my new mantra’. Shaun shares this dream with Emma and together they have made the decision to fulfil a lifelong dream of buying a holiday home in France with the money they have accessed from their property with Equity Release. ‘Knowing that this vehicle was available to enable me to live the life I wish is a gift. ‘

Who can use Equity Release to buy a second home?

Depending on the value of your property, your age and health, you could release enough wealth from your first property to make a cash purchase on a holiday home, contribute a healthy deposit or make regular payments towards the purchase price. Who wouldn’t want the guarantee of a sunny climate, an alpine retreat or the experience of a new inspiring cultural lifestyle in this way?

So how does it work?

The most popular form of Equity Release is a Lifetime Mortgage which allows you to release money from your home without having to move. It’s a loan that is secured against your property, at a fixed rate of interest that can be taken out either as a lump sum, as a regular income or spread over a number of years using a drawdown facility ( different interest rates may be applicable to drawdowns). Like a traditional mortgage, you can choose to pay back only the interest on the initial loan or pay back both the interest and the capital in regular monthly instalments. However, you also have the option to let the interest roll up and you never make a single payment, the cost of the loan being paid back from the value of your estate when you either die or go into long term care. Whatever Lifetime Mortgage plan works best for your personal circumstances there will always be a ‘No Negative Equity Guarantee’ meaning that you will never owe more than the value of your estate and you can stay living in your own home for as long as you choose.

A ‘Golden’ lifestyle living between countries

The beauty of buying a Holiday home overseas is that you can choose to spend your time where the climate suits your needs at different times of the year. Escape the harsh British winters in warmer Mediterranean climates, enjoy the snow season in the Alps in early Spring, or enjoy the guarantee of summer sunshine on the Mediterranean coast. A choice of climate is not the only advantage of an overseas lifestyle: you can experience the delights of different cultures and cuisines, learn a new language, make new friends or be closer to family living abroad. Provided that the property is kept in good condition, that you are a UK taxpayer and remain living in your UK residence for at least 6 months of the year, you can enjoy this luxury that your Lifetime Mortgage can give you.

If releasing wealth from your property to purchase your dream home abroad is of interest to you, please contact Kevin Woods on 01489 454545 or kevin.woods@therightequityrelease.co.uk to discuss your situation in confidence and without any commitment or obligation.

* https://www.telegraph.co.uk/financial-services/retirement-solutions/equity-release-service/fund-holiday-home-equity-release/

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

Working in partnership with

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Do you have a Lasting Power of Attorney? - My Blog - Kevin Woods - Equity Release Specialist, Hampshire

Do you have a Lasting Power of Attorney?

24th June 2019

Most people have heard of a Lasting Power of Attorney and many may also know exactly what it is. But how many people have actively taken out an Lasting Power of Attorney to protect themselves against the loss of their mental capacity and the consequential loss of ability to control the future of their finances and well being?

Life can be unpredictable and when we are least expecting it, events can change our lives in ways we could never have planned for.

Have you ever considered what would happen to your estate and finances should you lose the mental capacity to make decisions for yourself? Who would make important medical decisions for you on your behalf and still have your best interests at heart? The responsibility that comes with any financial planning is important which is why we would like to make you aware of the benefits of having a Lasting Power of Attorney (LPA).

A Lasting Power of Attorney is a vital document that enables another person to make important decisions on your behalf should you lose the mental capacity to do so in the future. There are two types of Lasting Power of Attorneys:

    Finance and Property

    Health and Welfare

Without these legal documents, decisions about your finances and property, and health and welfare will be passed to a Court of Protection which could take up to a year to process and is both expensive and stressful. During this time your situation stagnates:

  • You will not be able to access any additional funds that you wish to drawdown from your Equity Release plan
  • You will not be able to re-finance
  • You will not be able to sell your home
  • No bills will be paid
  • Your family/chosen donor will not be able to decide where you live
  • Your family/chosen donor will not be able to move you to a care home
  • The decision to give or refuse life saving treatment will be made by a Doctor and not your family/chosen donor

However, this situation can easily be avoided by creating either one or both of the Lasting Power of Attorneys and with our help it couldn’t be simpler to do.

Easy to do!

We will take care of all the legal documentation and all you need to do is provide us with the names addresses of the following:

1. The DONOR – this is you, the person creating the Lasting Power of Attorney

2. The ATTORNEY – the person you wish to act on your behalf. This is often a family member or close friend

3. The REPLACEMENT ATTORNEY – the person who will take over from the attorney should they no longer be able to carry out their duties. You can choose more than one replacement attorney.

4. The CERTIFICATE PROVIDER – the person who confirms you have mental capacity. We can act as your certificate provider.

Don’t leave it until it’s too late!

You will only be able to make a Last Power of Attorney whilst you still have mental capacity. Once you have lost this ability, decisions about your finances and welfare will be taken away from you and passed to a legal Attorney and your desires and those of your loved ones will no longer be effective. So act today, and give yourself the peace of mind knowing that your future can still be influenced by those who love and care for you.

We are able to offer you this important service at a competitive rate and we will be happy to assist you throughout the process. Should creating a Lasting Power of Attorney be of interest to you, please contact Kevin Woods on 01489 454545 or kevin.woods@therightequityrelease.co.uk to discuss your situation without obligation or fee of any kind.

Prepare for the unexpected, protect your future, gain peace of mind.

*Lasting Powers of Attorney are not regulated by the Financial Conduct Authority

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

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Switch your existing Equity Release plan for a cheaper deal today - My Blog - Kevin Woods - Equity Release Specialist, Hampshire

Switch your existing Equity Release plan for a cheaper deal today

14th June 2019

Do you have an existing Equity Release plan? Has it been reviewed? It could be time to look at your existing plan to see if you could switch to a cheaper deal.

If you have taken out Equity Release in the past, you may not be aware that you could switch your existing plan to a better deal and potentially save yourselves £1000s in interest. Nowadays, the interest rates for Lifetime Mortgages – as Equity Release is also known – are currently the lowest they have ever been. If you were to take out an ER plan today the interest rates could be as low as 3.3% whereas in the past many plans offered rates as high as 6, 7, or even 8%. Feel cheated? Don’t! The good news is that if you have an existing Lifetime Mortgage, we could help you ‘switch’ the old plan with the higher interest rate, to a new plan at a lower cost and save you money. It is very similar to how traditional buyers may choose to re-mortgage to find a better rate of interest. So why wouldn’t you do the same with your Lifetime Mortgage?

How does it work?

Essentially getting a new deal is the same as taking out an Equity Release plan for the first time. As your specialist advisor we would look at your age, health and current value of your property, and consider the actual value of your existing loan and any associated Early Repayment Charge (not all plans have this penalty included). Even if there is an Early Repayment Charge, overall it may still be cheaper to get a new loan.

We would then find a new plan at a lower rate of interest which would be used to pay off the original loan, and any Early Repayment Charge if applicable, and potentially allow you to release further funds from the value of your estate if desired. The new plan may also have additional benefits which did not exist in your old plan such as downsizing options, drawdown facilities, free optional repayment of the loan, free repayment on death of the first life, and inheritance protection.

A switch is a change….. and change can be good.

With this new knowledge in mind you could switch plans and save money and give yourself a lifetime worth of new experiences and freedoms that you never knew were possible. If switching your existing Equity Release plan is something that you would like to consider, why not call Kevin Woods on 01489 454545 or at kevin.woods@therightequityrelease.co.uk to discuss your situation in confidence and without commitment or fee of any kind.

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

Working in partnership with

JUST
LV
ONEFAMILY
HODGE
Pure Retirement
How to find a good Equity Release Adviser - My Blog - Kevin Woods - Equity Release Specialist, Hampshire

How to find a good Equity Release Adviser

15th May 2019

With the growing number of Equity Release companies and advisers nowadays, it is hard to know who to turn to if you are considering taking out an Equity Release product. And you are right to be cautious when you are entrusting your finances into the hands of financial advisers, as you need to ensure that you are dealing with people who have your best interest at heart. That is why so many people are turning to Kevin Woods when they need advice and guidance on Equity Release.

Anyone who knows Kevin will contest that he is one of the most honest, genuine and caring men they know, and Kevin carries these traits through to his business practice.

When it comes to helping people, it is important to Kevin that his clients feel well informed, comfortable and respected as individuals when discussing their financial issues and dreams with him. His approach is flexible, his delivery is clear, and his attitude is both supportive and directive.

Kevin works from an easy access office in Park Gate near Fareham in Hampshire, with the support of an administrative assistant and a business development manager who work together as a team to ensure the smooth running of the business and the satisfaction of their clients.

From the guarantee of a friendly voice at the other end of the phone, to a warm office welcome – often with tea and biscuits on hand! – clients will feel at home from the minute they walk through the door and leave with a smile on their faces. If you would prefer a home visit, Kevin would be equally happy to come to you to discuss your financial situation in person.

Professional

Kevin has been working in the financial services industry for over 40 years since the age of 18 and specialising in Equity Release as an Independent Adviser since 2012. With access to a wide range of Equity Release products available, Kevin has excellent knowledge of the specific differences between the plans on offer and able to recommend a bespoke option to suit your financial requirements.

He is a member of the Equity Release Council, and part of The Right Equity Release LTD which provides him with regular training and support. Last year, Kevin was awarded Number 1 Top Adviser for the Right Equity Release which reflects his strength in the industry and dedication to his clients.

Personal

Our clients choose us because we offer a family friendly, impartial, honest service which focuses on finding the best Equity Release plan to meet their specific financial needs. We are satisfaction driven, not target driven and are genuinely interested in helping our clients as best we can.

Flexible

Our clients can choose to receive our impartial advice either over the phone or face to face in our easy access office in Park Gate or in their own homes if they would prefer.

After sales service

We do not leave our clients to surf their financial futures alone once they have completed business with us: we endeavour to review the plans they have taken out at a timely interval in the future to see if a better plan may be on offer to achieve the same objective under a ‘re-broke’ system, for example where interest rates might have fallen.

We have helped many clients to renew their existing Equity Release plans and many are now paying lower interest rates or have plans with added features as a result of this ‘re-broking’ process. Please note that early redemption penalties may apply.

If you are looking for honest, ethical, trusted advice on Equity Release then with Kevin Woods you can ensure the service you receive is genuine. When you can’t see the ‘woods for the trees’, Kevin’s knowledge and care will help to guide you through your financial choices. Contact Kevin Woods on 01489 454545 or at kevin.woods@therightequityrelease.co.uk to discuss your situation in confidence and without commitment or fee of any kind.

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

Working in partnership with

JUST
LV
ONEFAMILY
HODGE
Pure Retirement
To ‘B’ or not to ‘B’? Surviving Brexit with Equity Release - My Blog - Kevin Woods - Equity Release Specialist, Hampshire

To ‘B’ or not to ‘B’? Surviving Brexit with Equity Release

18th April 2019

Brexit: dare we even mention the word nowadays? Such political and financial uncertainty and potential world-wide governmental embarrassment has left us all in a quandary about our futures in the UK. Mention the ‘B’ word and a whole array of emotions are evoked: shame, aspirations, regret, fear, anger – but from an individual point of view one major concern we all share has to be how our finances will be affected.

Brexit: The uncertainty is bewildering and unsettling. ‘In’ or ‘out’ we all still have bills to pay, jobs to maintain, pension funds to rely on and futures to budget for. It is predicted that food and fuel prices may increase because we currently rely on many of these sources from EU providers (Wondered why the price of butter has increased lately?). Energy and fuel prices have also both increased since the Brexit vote: EDF electricity prices have gone up by 8.4% and the AA fuel report states that the UK average fuel price in June 2016 was 111.6p per litre but has now increased significantly to 121.7p per litre*.

As for our pensions, the Office for Budget Responsibility suggests that pensioners could be worse off over the next 5 years possibly due to the wider market impact of a potentially changing national economy: the state pension age may also be pushed up under Brexit**. Other savings and investments that we currently rely upon for either income or emergency funds are not exempt from any possible side effects and brokers suggest that foreign traders may be reluctant to invest in an unstable economy leading to a decline in shares in UK business.

Thankfully, it looks as though at present unemployment rates and housing prices are yet to suffer any significant impact but just like the British weather, the forecast for these 2 areas is also unpredictable. The effect Brexit will have on UK employment, benefit payments and housing prices is still speculative, with much depending on the overall performance of the economy.

With such uncertainty it is difficult to feel any sense of financial security and you may be feeling exceptionally anxious about whether you will be able to financially survive in the future. What if the economy changes to such an extent that you can no longer pay your mortgage, or you do not have enough money to finance bills, fuel, food, or health care costs? What if your income, pension funds and other investments are affected and you cannot maintain your current lifestyle?

Having access to a reliable source of income would provide a comforting support in a financially changing economy, providing you with the peace of mind of knowing that you could afford to maintain your current lifestyle. But how? This is where Equity Release may be able to help.

Equity Release and Brexit: What is Equity Release and how could it help?

Equity release, or a lifetime mortgage, involves taking a loan out against your property often at a very competitive rate of interest. You can choose to take the money out either as a tax-free lump sum or take smaller amounts over a longer period using a drawdown facility. You have the option to pay back the capital and the interest periodically or allow the interest to roll-up and the value of the loan is taken out of the property when you either die or go into long-term care. The increasing number of product options available on the market nowadays mean that there will be a plan to meet your individual needs whatever option suits your personal circumstances.

The benefits of Equity Release.

Unlocking the equity in your property to release accessible funds has so many benefits:

• You can stay living in your own home and retain 100% ownership

• You can supplement or acquire an income

• The money you release is tax-free

• You do not have to pay back the loan unless you choose to

• You can keep a minimum inheritance guarantee

• You will never owe more than the value of your property

To ‘B’ or not to ‘B’ yes, that is the question but whatever the answer to Brexit may or may not be, your financial future could be better assured if you choose to release the value from the home you are living in through Equity Release. The demand for Equity Release has never been higher and continues to grow nationwide, now becoming a mainstream option of funding choice for asset rich homeowners. So if Brexit is on your mind, and you are considering releasing some of the equity in your property to provide you with some financial security during this period of ongoing fiscal uncertainty, then please contact Kevin Woods on 01489 454545, or kevin.woods@therightequityrelease.co.uk to discuss your situation in confidence and without commitment of fee of any kind.

Reference:

*/** https://www.money.co.uk/guides/brexit-personal-finances.htm 11/04/2019

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

Working in partnership with

JUST
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Equity Release – the best gift you could give to your children - My Blog - Kevin Woods - Equity Release Specialist, Hampshire

Equity Release – the best gift you could give to your children

27th March 2019

Nowadays, stepping onto the property ladder for many people seems out of reach due to the recent rise in house prices alongside a sluggish growth in wages. However, the money you have invested in your own property over the years could be released to help someone you care for buy their own home for the first time.

Ask most parents what they want for their children and they would most likely say for them to be happy, healthy and financially secure. Financial security often means having a well-paid job and your own house to live in. Yet nowadays, stepping onto the property ladder for many people seems out of reach due to the recent rise in house prices alongside a sluggish growth in wages. Most mortgage lenders would lend you on average 4 times your single or combined spouse salary, and for many people nowadays this just isn’t enough to purchase a property. The shortfall seems to be in the ability to put down a larger deposit – and this is where the ‘Bank Of Mum And Dad’ could help out.

The BANK OF MUM AND DAD – the new major lender in UK housing.

This year the Bank of Mum and Dad will support 316, 600 loved ones to buy a home injecting £5.7bn* into the housing market. In fact, last year 59% of under 35-year olds, 43% of 35 – 44 year olds and 26% of 45 – 54 year olds** would not have been able to buy a house without the financial help of a parent, relative or friend in this way.

If a willing contributor has accessible savings to contribute to a deposit then this could be the answer to the deposit problem. Nevertheless, realistically we don’t all have a hidden pot of money at our disposal to use as we please. Or do we? If you own your own home, are aged 55+ and live in the UK then the money tied up in your home could be released to assist a loved one in purchasing a family home of their own.

Equity release – help your loved ones get onto the property ladder.

One tool that remains significantly under-utilised in financial gifting is Equity Release. If you are a home-owner then you could release some of the equity in your property to gift to a loved one to help them buy their first, or even second home. In fact, it remains the principal reason why over 55-year olds would consider equity release***.

So how does it work?

It’s easy. Equity release can involve taking out a Lifetime Mortgage which allows you to release money from your home without having to move. It’s a loan that is secured against your property, at a fixed rate of interest that can be taken out either as a lump sum or spread over a number of years using a drawdown facility. Like a traditional mortgage, you can choose to pay back only the interest on the initial loan or pay back both the interest and the capital in regular monthly instalments. However, unlike traditional mortgages you also have the option to let the interest roll up and you never have to pay back the loan. The cost of the loan is simply taken back from the value of your estate when you either die or go into long term care. Whatever Lifetime Mortgage plan works best for your personal circumstances there will always be a ‘No Negative Equity Guarantee’ meaning that you will never owe more than the value of your estate and you can stay living in your own home for as long as you choose.

Equity Release – the best gift you could give to your children

The first step onto the property ladder has always been difficult but in today’s financial climate it seems to be further out of reach for many than it ever has been. If gifting to your children through Equity Release is something that you would like to consider, in order to help them make that incredibly difficult leap onto the first rung of the housing ladder in a seemingly impossible housing market, then why not contact Kevin Woods on 01489 454545, or at kevin.woods@therightequityrelease.co.uk to discuss your situation in confidence and without charge or obligation of any kind. After the gift of life, it could be the best gift you will ever give to your children.

*/**survey of over 1,000 UK adults commissioned by Legal and General in April 2018. Cebr analysis
***survey of over 2,000 adults commissioned by Legal and general in April 2018. Cebr analysis

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

Working in partnership with

JUST
LV
ONEFAMILY
HODGE
Pure Retirement
Let Equity Release help with your Care Costs - My Blog - Kevin Woods - Equity Release Specialist, Hampshire

Let Equity Release help with your Care Costs

20th March 2019

It’s good news! Nowadays we are all living longer. However, as we get older, we may find ourselves in need of daily assistance in our own home to be able to continue living there comfortably, rather than move to a care home.

Most people have invested a lifetime of love and memories into their homes and when they get older they want to remain living in the place they have made their emotional nest and physical place of comfort. However, the body fails and the mind drags and often the ability to remain living independently in our own homes becomes a challenge. Not only does the physical environment hinder us with stairs to climb, bath tubs to negotiate, and shelves to access which seem to have grown out of reach, but the mind forgets how to follow the daily tasks necessary for comfortable existence. The options may seem simple: move to a rest home where you are looked after around the clock or stay in your own home and pay for daily help and home adaptations.

Easy to decide? Not really, as money is involved in both options and we do not all have access to the funds needed to keep us, or our family members living safely in their own homes. You could apply for funding from your local authority but if you do not meet the requirements of governmental help, you may not be able to afford essential domiciliary care costs and interior renovations, and this is where Equity Release may be able to help.

Equity Release involves taking out a loan against your property, often at very competitive rates of interest, which you can choose to pay back over a period of time or allow to roll up with the full amount being taken out of the value of the estate when you either die or go into long term care. Having access to funds which are currently tied up in your property could enable you to finance domiciliary care in the home or make necessary adaptations to the house for example by installing:

  • ground floor toilet
  • stair lift
  • fitted handrails
  • ramps
  • showers

Furthermore, the money could be used to pay for domiciliary care and the comfort of knowing that someone will regularly visit you to help with medical care, daily chores and reassuringly provide a source of regular company and conversation.
You have worked hard to create a loving home and you have every right to want to remain living in your place of emotional comfort and connection for as long as you desire. By using the funds you could release through Equity Release this strong desire could become a real possibility for your future living arrangements. You will not need to use your wings to fly from your nest, rather you can ruffle your feathers in the comfort of knowing that you are still happily at home.

If you would like to access funds to provide a regular income to pay for care costs, or money to finance property adaptations, releasing some of the equity in your property may be a welcome solution. If you own your own home, are aged 55+ and live in the UK, then why not talk with Kevin Woods on 01489 454545, or at kevin.woods@therightequityrelease.co.uk to discuss your Equity Release options in confidence and without obligation or fees of any kind.

Your care, your home, your choice

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

Working in partnership with

JUST
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Equity Release – Simply a ‘Loan’ You Can Pay Back Like Any Other - My Blog - Kevin Woods - Equity Release Specialist, Hampshire

Equity Release – Simply a ‘Loan’ You Can Pay Back Like Any Other

1st March 2019

Releasing equity from your property in the form of a Lifetime Mortgage can often be a far less expensive way of taking out a loan nowadays with many plans offering fixed interest rates as low as 3.7% per annum

Releasing equity from your property in the form of a Lifetime Mortgage can often be a far less expensive way of taking out a loan nowadays with many plans offering fixed interest rates as low as 3.7% per annum.

Despite recent media coverage suggesting that Equity Release is both a risky and expensive way of accessing money from the value in your property, taking out a Lifetime Mortgage (which is the other term used to talk about Equity Release) works in a very similar way to any other mortgage loan: You can choose:

  • Interest only options – you only pay back the interest on the loan
  • Repayment plans – you pay back both the interest and the capital on the loan

However, a Lifetime Mortgage also allows you many other options that regular mortgages cannot:

  • You can allow the interest to roll up - the loan is then repayable when you die or go into long term care
  • There is a ‘No negative equity guarantee’ – you will never owe more than the value of your estate.

Who would benefit from taking out a Lifetime Mortgage?

A Lifetime Mortgage may be a good option for you if:

  • You have no beneficiaries
  • You are cash poor but asset rich
  • You have the ability to pay back the loan and want a lower rate of interest than other financial providers can offer.
  • You cannot pay back the loan but desperately need money for personal reasons: health care bills, care home expenses, obligatory home repairs or renovations
  • You want to supplement your pension and do not want to struggle in your retirement
  • You want to stay in your own home and do not want to have to move for financial reasons

So if you are thinking of taking out a loan, why not consider taking out a Lifetime Mortgage and let your house help you to achieve your financial goals whilst still living in it.

If you would like to discuss your situation in confidence, and without charge or obligation of any kind, please contact Kevin Woods on 01489 454545, or at kevin.woods@therightequityrelease.co.uk and he will be happy to help you.

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

Working in partnership with

JUST
LV
ONEFAMILY
HODGE
Pure Retirement
Over 55-year olds are ambitious and young at heart! - My Blog - Kevin Woods - Equity Release Specialist, Hampshire

Over 55-year olds are ambitious and young at heart!

20th February 2019

It seems that age is no longer a barrier for the majority of our over 55-year olds and that retirement represents the beginning of a new and exciting stage of their lives rather than the end of their flourishing youth!

In a recent survey carried out by Legal and General*, it was revealed that 72% of over 55-year olds still had goals they would like to achieve and that 82% of them felt younger than their biological age. That being the case, many of them saw their 60s, and their impending retirement, as the period in which they wanted to finally start to tackle their ‘to-do’ list of life goals.

In the top 30 answers about what excited them about their retirement, travel and self-improvement were top of the list. This included ambitions such as to:

  • travel to Australia
  • move abroad
  • buy a sports car
  • volunteer for a charity
  • learn a foreign language
  • take up a new physical sport, such as mountain climbing or golf
  • downsize their home
  • pay off their mortgage

Thankfully optimism still prevails amongst the survey participants and more than half considered that they still had time to achieve these goals!

Remaining curious about life and wanting to fully participate in the wide array of beautiful opportunities that life has to offer is healthy and promotes longevity. Nobody really wants age or circumstances to stop us doing what we want in life, do we? However, our perception of reality often leads us to believe that our dreams cannot be fulfilled, that our health is not strong enough, or that our finances do not lend the extra capital needed to pursue such ambition.

We have the dreams, but do we have the means?

It seems that once again the number one barrier in preventing us from achieving our dreams - and this is true for any age group - is money. The magical, mysterious, yet malicious M-word. After paying the obligatory life-style bills to keep a roof over our heads and food in our bellies, not everyone has the extra cash to fund their life-style ambitions and pleasures. Some of us have tried to organise our finances so that in retirement, when a professional salary may or may not be contributing to our income, we can rely on investments or savings to fund our life-style. But what can you do if money is short, if the M-word is meagre and if the barrier between our flight towards freedom and our stationary existence is not budging? Consider releasing the equity in your property and learn to fly again!

What is Equity Release and how does it work?

Equity Release, or a Lifetime Mortgage, allows you to release money from your home without having to move. It’s a loan secured against your property which can be used to provide you with an additional source of income to top up your pension for example or finance your ‘to-do’ list of life goals.

It’s really very simple: you have been repaying your mortgage on a monthly basis for years and built up equity in your property. The money you have been repaying has essentially created for you an asset which you can choose to use in the same way that you would access money from a savings account regardless of whether you have finished paying off your mortgage or not. Equity Release simply lets you regain access to that money to use in whatever way you desire. You can choose to repay the loan, in the same way that you do with a regular mortgage or allow the interest to roll up and the loan is repaid on sale of your property when you die or go into long-term care.

It is so important to us, as individuals that we feel fulfilled in life, that we have the financial freedom to be able to achieve our desires and that we have the power as individuals to choose our own future, as much as is reasonably possible.

It is important to us, as a company, that we can support the kind of exciting and meaningful life experience that our clients wish to achieve. If you think that Equity Release may be right for you, please feel free to contact Kevin Woods to discuss your situation in confidence, and without charge or obligation of any kind.

*Legal and General Home Finance Limited. Q0057544/SUB0192780/Aug 2018

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

Working in partnership with

JUST
LV
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Pure Retirement
Kevin Woods wins ‘No. 1 Top Advisor Award’ - My Blog - Kevin Woods - Equity Release Specialist, Hampshire

Kevin Woods wins ‘No. 1 Top Advisor Award’

19th February 2019

We are delighted to announce that Kevin Woods was awarded the Number 1 position of Top Advisor 2018 by The Right Equity Release. This award recognises not only the number of sales he has achieved and the increased growth of his business, but also his ability to offer his clients a comprehensive, honest and personal level of service which has resulted in a reputable level of customer satisfaction.

The result of the award, offered annually by The Right Equity Release (TRER) to the most productive advisor, was announced late last year. Having narrowly missed the top position in 2017 when Kevin was awarded 2nd place, he was undoubtedly thrilled to have finally be awarded with this professional recognition of his business success.

An event at which Kevin would have received the award was held in Birmingham at the end of January 2019, but due to being overseas at the time, Kevin’s acknowledgement was delivered in the form of a written speech kindly read out to the audience by the head of TRER Rob Brennan.

In his written speech, Kevin detailed his business ethics, the developments he had made to his business to help it grow, and his personal feelings towards his work and the difference he likes to make for his clients:

“It has always been important to me that I have been able to offer my clients solid, professional, advice in order to create and maintain a reputation of being a respected advisor. I try to maintain an after-sales relationship with my clients so that they do not feel abandoned at any point. I aim to phone them regularly, find out if their situation has changed, review their existing plan to see if they have any additional financial needs and generally keep in touch to make sure that all is well”

Finally, in receiving this award, Kevin remembers the business success of his late father who passed away last year. His father regularly received awards for his excellent business achievements and now Kevin has finally been able to follow in his father’s footsteps:

“I dedicate my achievement to my late Father who constantly won Top Achiever Awards year after year during his time with Royal London; he would have been so proud. Finally, I’ve done it Dad – you are my inspiration!”

If you think that Kevin may be able to help you find a solution to your financial concerns, or assist you in achieving your financial dreams, please contact Kevin Woods to discuss your situation in confidence, and without charge or obligation of any kind.

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

Working in partnership with

JUST
LV
ONEFAMILY
HODGE
Pure Retirement
New Year, New Resolutions… but what about your finances? - My Blog - Kevin Woods - Equity Release Specialist, Hampshire

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

Working in partnership with

JUST
LV
ONEFAMILY
HODGE
Pure Retirement
Struggling to make ends meet on your pension? Let your house help you out! - My Blog - Kevin Woods - Equity Release Specialist, Hampshire

Struggling to make ends meet on your pension? Let your house help you out!

21st December 2018

So, you have been receiving a regular monthly salary for most of your working life, and now that you have reached the age of retirement the financial security of your monthly pay slip is gone, only to be replaced by whatever form of pension plan you have, or have not, put in place. Undoubtedly your monthly salary is now going to be lower than the income that you have become accustomed to; if this difference is significant, how are you going to be able to pay the bills and make ends meet each month, let alone maintain the lifestyle of eating out, buying treats for the grandchildren or going for the occasional trip to the spa/overseas that you have become used to?

How to top up your pension income

Thankfully someone has been thinking of you and your predicament and come up with the genius idea of using/releasing the equity in your property to provide you with a monthly income through an Income Lifetime Mortgage. Baffling? It certainly is, but also genius. And it makes complete sense.

So how does it work?

A lifetime mortgage allows you to release money from your home without having to move. It’s a loan that is secured against your property which can be used to provide you with an additional source of income to top up your pension for example. So, you can take out an initial lump sum to help you adjust to your new financial lifestyle, then set up a plan to provide you with a monthly income over a fixed income term.

Interest is added to the amount you owe each month, often referred to as compound interest, which you can choose to pay back or allow to rollup. You can choose to receive an income from your lifetime mortgage over a period of either 5, 10, 15, 20 or 25 years. Once the fixed term comes to an end the monthly income will stop, but interest will continue to roll up until the lifetime mortgage is repaid.

What if I do not have the means to repay the lifetime mortgage?

No worries! You never have to as the loan and the property work together to enable you to live your life and never have to worry about repaying the loan. Your house will look after you! You can’t make any repayments whilst receiving the monthly income anyway so you can relax. The lifetime mortgage is usually repaid from the sale of your home when you, or the remaining applicant (if the mortgage is in joint names) dies or moves out of your home into long term care. Naturally, any money left from the sale of your property after the loan has been repaid will be left to your beneficiaries.

What can I use my monthly income for?

So many things!

Without the additional funds provided by your income lifetime mortgage, many of these luxuries may be out of reach - but they needn’t be. If you are aged 55+, live in your own home worth a minimum £100, 000 in England, Wales or mainland Scotland, and require a regular monthly income for a fixed term then you could easily apply for this wonderful financial gift that your house could make to you, enabling you to stay in your home in comfort for as long as you desire.

    • Provide additional income
    • Lifestyle improvements
    • Holidays and trips
    • Home improvements
    • Pay off outstanding debt

    If having an Income Lifetime Mortgage appeals to you, contact Kevin Woods to discuss your situation in confidence, and without charge or obligation of any kind.

    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

    Working in partnership with

    JUST
    LV
    ONEFAMILY
    HODGE
    Pure Retirement
    Interest-only mortgage coming to an end? Let Equity Release help you pay back your original mortgage - My Blog - Kevin Woods - Equity Release Specialist, Hampshire

    Interest-only mortgage coming to an end? Let Equity Release help you pay back your original mortgage

    5th November 2018

    When it comes to mortgages, there are so many factors to consider. One of the most important decisions is whether to apply for a repayment mortgage or an interest-only mortgage. With a repayment mortgage, your monthly payments go towards clearing some of the original loan as well as paying the interest owed on it; with an interest-only mortgage the payments only cover the interest on the loan and you do not repay the original loan amount until the end of term.

    If you do have an interest-only mortgage hopefully you have worked out a plan to pay off the capital at the end of the mortgage term. These may include:

    • Cash in savings accounts or cash ISAs
    • Stocks and Shares ISAs
    • Shares, endowment policies or unit trusts
    • Pensions
    • Other assets

    It is important that you keep track of these investments to ensure that when your mortgage comes to term you have the financial means to pay back the original loan amount. If you have more than 50% equity in your property and an approved repayment plan in place to pay back the original loan, then your repayment facilities should probably be enough.

    But what can you do if you do not have a plan to pay back the original loan? Firstly, do not panic – there are several options that can be considered.

    1. Add up any savings that you could use to start to reduce the original loan. Contact your lender to ask about making overpayments.
    2. Ask you lender about switching to a capital and interest mortgage.
    3. Ask your lender about switching to part repayment and part interest- only mortgage
    4. Extend the term of your mortgage to give you more time to pay towards the original loan.
    5. Use a monthly Budget planner to review how much spare cash you may have each month and start to re-budget your monthly expenses. Try www.moneyadviceservice.org.uk/budgetplanner

    Always ask your lender about any fees involved when switching or amending your original mortgage product.

    So, how can Equity Release help with paying back an interest-only mortgage?

    Clients with interest-only mortgages can pay off their existing loans by taking out a Lifetime Mortgage, enabling then to stay in the home that they love.

    So how does it work? It’s simple!

     So, how can Equity Release help with paying back an interest-only mortgage?

    Either way you can remain living comfortably in your own home for as long as you choose.

    A Lifetime Mortgage – A popular choice

    There is around £1.5 trillion in housing equity owned by people aged over 55 years yet only 3%¹ of those eligible have chosen to unlock the value in their homes to meet their current financial needs or dreams. There are an estimated 1.67 million² customers with interest-only mortgages yet 13%³ say they did not have a separate plan in place to pay back the original loan.

    If you would like to consider taking out a Lifetime mortgage you must be:

    • Aged 55+
    • Own your own home worth £100,000+
    • Want to borrow a minimum of £10,000
    • Live in England, Wales or Scotland

    If your interest-only mortgage is coming to an end, and you think that a Lifetime Mortgage may be right for you, contact Kevin Woods to discuss your situation in confidence, and without charge or obligation of any kind.

    Reference:
    ¹ Silver Spenders, Legal &General Home Finance Ltd, 2018, page 3.
    ² FCA urges action on interest-only mortgages, FCA, January 2018.
    ³ GFK. Interest-only mortgages. Consumer research – consumer strategies for repaying the loan at the end of the mortgage term.

    Source: www.moneyadviceservice.org.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

    Working in partnership with

    JUST
    LV
    ONEFAMILY
    HODGE
    Pure Retirement
    The Equity Release Market is growing - My Blog - Kevin Woods - Equity Release Specialist, Hampshire

    The Equity Release Market is growing

    8th October 2018

    It’s good news! 2018 has been a fantastic year so far for the growth of this exciting new area of the Financial Marketplace. More and more people are seeing the wealth in their properties as a way of meeting their growing personal, social and financial needs.

    This year I have been helping more and more people to finance different areas of their lives including:

    • Paying off their mortgages
    • Clearing debts
    • Gifting to a family member to help them buy their own home
    • Home improvements
    • Funding a lifetime experience such as a holiday

    Growing number of product options

    I now have access to nearly DOUBLE the number of product options available to offer to my clients, which means that the ability to access the wealth within your property has now been made even easier. The growing number of plans can offer:

    • Greater flexibility in terms of making payments
    • Inheritance protection
    • Drawdown facilities – ability to take out more equity from the property in the future
    • Lower lifetime fixed interest rates
    • Ability to pay off lump sums on a voluntary basis
    • Ability to be able to transfer the plan to another property
    • Wider property criteria accepted
    • Higher loan to value
    • No negative equity guarantees
    • The ability to retain ownership of your own property

    The marketplace has become competitive so providers, such as Legal and General, One Family, Retirement Advantage, More to Life, Pure Retirement and Legal and General have risen to the challenge and introduced new products and increased product flexibility. The plans I offer have increasingly competitive rates of interest whilst still maintaining the same high standards and protections to ensure their products provide good outcomes for customers.

    These plans encompass the needs of even more people aged 55+, enabling a growing number of my clients to realise their dreams.

    Increased number of people taking out a Lifetime Mortgage

    Business here in my office is growing and more and more people are contacting me to help them access the wealth in their properties to meet their different financial needs. Across the whole of the industry, the number of households aged 55+ taking out a Lifetime Mortgage was 38, 912 including a mixture of new plans and returning drawdown customers making withdrawals from their agreed reserve fund. Personally, I have helped nearly 100 clients release over £9, 000, 000 (*) from their properties in the last 12 months through taking out a Lifetime Mortgage, and I have seen many happy customers pay off their debts, make home improvements or help a family member buy their first home. It always makes me so happy to see my customers finally carry out a lifelong dream or a solution to a stressful financial situation.

    The Equity Release market is better than it ever has been, and the rates of interest are increasingly competitive with many other loan products available. There has never been a better time to consider equity release as a real option and access the funds that you already have. Your future dreams and financial solutions are already within your reach so please, feel free to give me a call and I will be more than happy to talk you through the options available to you.

    *Equity Release is available to people aged over the age of 55 and have a minimum property value of £75, 000. Equity Release may not be vailable to everyone.

    Source: All figures taken from the Equity Release Council’s Autumn 2018 Market Report, unless otherwise stated. The Autumn 2018 Market Report uses aggregated data supplied by all active provider members of The Council to create the most comprehensive view of consumer trends and product uptake across the equity release industry.

    The latest edition was produced in Autumn 2018 using data from new plans taken out in the first half of 2018, alongside historic data. All figures quoted are aggregated for the whole market and do not represent the business of individual member firms. Annual changes are rounded to the nearest percentage point while customer and lending data is reported to one decimal place.

    (*) Figures taken from CRM 24/09/18. Actual number of cases=99, Actual total value of released equity = £9,356,599

    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

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    JUST
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    Business is growing! - My Blog - Kevin Woods - Equity Release Specialist, Hampshire

    Business is growing!

    3rd October 2018

    Due to the growing success of our business we have moved into a larger office suite in our Park Gate Residence in Webb House and have introduced a new member of staff to help with the increased expansion of our business.

    Over the summer months, this exciting move to the larger office suite was completed and our new space has been redesigned to provide a welcoming and comfortable area for our clients. We are very happy working in our new office space where we can continue to provide our customers with the professional yet personable and reassuring service they have learned to expect from us

    We also welcome the arrival of Business Development Manager Samantha Hawnt who has recently joined the team to help with our growing portfolio of clients. Samantha has a strong background in customer communication and strategic planning and will provide much needed support for the increased demand of our Equity Release Products and other associated financial services. It may well be Samantha now who answers the call when you phone into the office or who will be contacting you with updates on the progress of your application.

    This exciting development of our business follows five years of strong growth for our dedicated team. In the last 12 months we have helped nearly 100 new clients release a combined total of over £9, 000, 000 – we are so proud every time we are able to help some either fulfil a lifelong ambition, go on a long-awaited dream cruise, make important the home improvements or clear a worrying debt. We are in the business of helping people and that’s what we like to do.

    Keep an eye on our website for regular Blogs about changes in the market, or updates to our services. We have plans to increase the number of services we currently offer, and news will be posted on our website. Also, keep track of Kevin’s nomination for an Industry Award to be decided on October 4th… watch this space!

    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

    Working in partnership with

    JUST
    LV
    ONEFAMILY
    HODGE
    Pure Retirement
    Equity release now available on buy-to-let and second homes - My Blog - Kevin Woods - Equity Release Specialist, Hampshire

    Equity release now available on buy-to-let and second homes

    16th May 2018

    Kevin Woods explains and comments on this interesting new departure in the equity release marketplace

    The buy-to-let market in the UK is estimated to be worth over £250 billion, and a recent announcement means that landlords may now release money from their portfolio, whilst leaving it intact. There are also products allowing equity release for owners of second homes.

    Buy-to-let owners can secure equity release on any property in England, Scotland or Wales, worth from £70,000 to £6 million (with more expensive properties reviewed on a case-by-case basis), without undergoing an affordability check.

    There are three options: the first provides a lump sum upfront, with interest rolling up for the duration of the loan; the second allows the landlord to service some or all of the interest; and the third enables them to make contributions of up to 10% of the initial sum every year without incurring an early repayment penalty.

    In addition, products aimed at the owners of second homes are also available, also for properties from £70,000 to £6 million, with more expensive properties being reviewed on a case-by-case basis. The property has to be for the owner’s sole occupancy, and they must be in residence for at least four weeks each year.

    I welcome these new products - they are yet another sign of the health and buoyancy of the equity release market, and the desire of providers to think ahead, to innovate and to bring out new products in the interests of their clients.

    These certainly are exciting times for equity release. As always, if you have any questions at all about this issue, or indeed any other equity release matter, please do not hesitate to contact me in any of the ways detailed on this site.

    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

    Working in partnership with

    JUST
    LV
    ONEFAMILY
    HODGE
    Pure Retirement
    UK sleepwalking into retirement income crisis - My Blog - Kevin Woods - Equity Release Specialist, Hampshire

    UK sleepwalking into retirement income crisis

    2nd May 2018

    Kevin Woods details the Equity Release Council research showing millions of us will run out of money in older age

    Recent research from the Equity Release Council has revealed that the pensions trend away from generous final salary based schemes towards more preset contribution based plans will see millions of workers with insufficient income in retirement.

    An employee contributing 8% into a scheme, and thereby accumulating a fund of £380,000, will end up with only a fifth of the pension of someone doing the same job, but with a defined benefit scheme, the £380,000 pot only buying an annuity of £12,000 p.a. at present rates.

    However, whilst pension schemes have been changing in this way, British homeowners have seen the value of their properties rocket: total homeowner equity topped £2.6 trillion last year, with £1.8 trillion belonging to the 55+ age group.

    It is therefore not surprising that equity release has burgeoned correspondingly: it was the fastest growing segment of the mortgage market in 2016, for the first time surpassing £2 billion. And the trend is set to continue: the second quarter of 2017 alone saw £700 million lent through equity release.

    Equity release offers an infinitely flexible solution to income shortfalls: homeowners may use the money released as a vital extra income source, a way of helping younger relatives, or a method by which to purchase that long sought after holiday, house extension or luxury.

    Recent years have seen many positive changes to the equity release market - customers may now opt for flexible repayment, for instance - but there is still opportunity for it to play a more central role in retirement finance.

    I hope that government policy makers will acknowledge the benefits of equity release, and that the financial sector and Westminster will redouble their efforts to ensure that the next generation of retirees can enjoy a comfortable and worry-free older age.

    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

    Working in partnership with

    JUST
    LV
    ONEFAMILY
    HODGE
    Pure Retirement
    Equity Release grows a staggering 58% in a year - My Blog - Kevin Woods - Equity Release Specialist, Hampshire

    Equity Release grows a staggering 58% in a year

    19th May 2017

    In this post Kevin outlines the huge growth in both equity release plans and their value since this time last year.

    In the first three months of 2017, 8,604 equity release plans were sold - 58% up from the 5,447 sold in the same period in 2016. The value of these plans was also up - from £414 million to £633 million - a 53% jump. In this post Kevin outlines the huge growth in both equity release plans and their value since this time last year.

    Analysts expect the numbers to keep rising in the months ahead, as more and more homeowners recognise the financial wisdom of releasing equity from their most valuable asset.

    Further analysis of the figures suggests that interest-only borrowers are driving equity release business at present: an estimated 10,000 borrowers are set to come to the end of interest-only loans between every year between now and 2020, and it is probable that many of these will turn to equity release to clear their debt.

    But, as usual, the reasons for accessing equity release remain many and varied. Figures show that most customers (62%) use it to fund home and garden improvements; 32% use it to finance holidays; and a further 30% utilise equity release to clear credit card and loan debt.

    Whilst the reasons for taking up the benefits of equity release are manifold, its rapid expansion underlines the fact that record low rates for these plans are driving demand. Equity release is in the mix of every discussion that older homeowners are having about securing their financial future.

    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

    Working in partnership with

    JUST
    LV
    ONEFAMILY
    HODGE
    Pure Retirement
    Equity Release Council announces record-breaking year - My Blog - Kevin Woods - Equity Release Specialist, Hampshire

    Equity Release Council announces record-breaking year

    17th March 2017

    2016 was a record-breaking year for equity releases, the Equity Release Council has announced. The second half of the year saw £1.24bn worth of equity unlocked, up 37% on the first half of the year, and significantly higher than the £898m totalled in the second half of 2015.

    It all adds up to annual equity release activity topping the £2bn mark for the first time.

    To put that into context, the first time annual lending was calculated was in 1992, with just £29m being unlocked. In our post-recession world, the market has trebled from £788m in 2011 to £2.15bn today. And the pre-financial crisis peak was £1.21bn in 2007.

    The increase in equity release business in 2016 saw lifetime mortgages (the most common type of equity release product) record the largest percentage growth rate in customer numbers with 22%, compared with 16% growth for buy-to-let remortgaging, the second fastest expanding area, which was the fastest grower in the years 2013-2015.

    With a boom like this in the equity release market - with older consumers increasingly more aware of equity release, and wanting to take a more holistic view of their financial assets and future quality of life - it is no surprise that the industry predicts further expansion in the sector in the coming years.

    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

    Working in partnership with

    JUST
    LV
    ONEFAMILY
    HODGE
    Pure Retirement
    “Bungalow crisis” - Shortfall in specialist senior housing - My Blog - Kevin Woods - Equity Release Specialist, Hampshire

    “Bungalow crisis” - Shortfall in specialist senior housing

    27th February 2017

    The International Longevity Centre UK recently published research that concludes that there is currently only sufficient specialist accommodation for 5% of the over-65s. Great Britain is facing a bungalow crisis, as single-storey properties are selling for hugely inflate prices in comparison with multi-storey.

    All of this rather undercuts the Government’s new housing white paper (February 2017), which attempts to stimulate the trend of older people downsizing. The lack of suitable housing, along with the costs of moving, shows this strategy could well be fatally flawed.

    I believe that any debate about financial planning in or close to retirement should include the possibility of downsizing, but should not rule out other options.

    A recent report on property and pensions shows that 63% of people recognise that their home is worth more than their pension fund, meaning that the lifestyle that our retirement craves and deserves would not be achievable without leveraging the value in our property.

    We also know that 82% of property owners want to spend their last years in their family home.

    The debate around the white paper will no doubt continue, and I for one would like to ensure that as many people as possible consider all of the viable routes to their dream retirement lifestyle. Downsizing will suit - and be feasible - for some, but not all. Equity release, similarly, will not be right for everyone, but it should at least be part of every conversation between the 55+ homeowner and their adviser.

    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

    Working in partnership with

    JUST
    LV
    ONEFAMILY
    HODGE
    Pure Retirement
    House price rises significantly outpace other income streams - My Blog - Kevin Woods - Equity Release Specialist, Hampshire

    House price rises significantly outpace other income streams

    5th January 2017

    New research from the Equity Release Council shows that, over the past 20 years, house prices in England have risen at over twice the rate of pensioner households’ disposable assets, significantly outdoing other retirement income, such as the state pensions, investments and occupational pensions.

    From 1994/5 to 2014/5, pensioners’ household incomes increased by 66% in real terms, whilst inflation-adjusted house prices rose 148%.

    Whilst it is true to say that the rise in house prices has not been constant, universal or linear in this time, we can confidently predict that housing equity will continue to be a significant asset for the foreseeable future, and should be a factor in any debate that a homeowner over the age of 55 has about their financial provisioning.

    I would like to see the government act to encourage people to include the money tied up in their property alongside their savings in any considerations that they make. I know from personal experience that equity release can play a hugely important and positive role for many couples and individuals who need to rethink their financial futures.

    With uncertainty from many directions affecting investment returns, housing equity is likely to remain the most reliable source of income for pensioners for many years.

    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

    Working in partnership with

    JUST
    LV
    ONEFAMILY
    HODGE
    Pure Retirement
    Annual equity release lending is set to top £2bn for the first time - My Blog - Kevin Woods - Equity Release Specialist, Hampshire

    Annual equity release lending is set to top £2bn for the first time

    15th December 2016

    It’s been a phenomenal and exciting year for the marketplace, says Kevin Woods

    The number of people realising the value tied up in their homes has reached record levels in 2016, helped by a few different factors.

    There has been increased support from the FCA, including proposals to scrap affordability checks, in moves that suggest the authority is looking at lifetime mortgages more positively and wanting to help rather than restrict their development.

    These regulatory changes have been simultaneous with negative news in other areas: it’s now both harder to qualify for a full state pension and easier to run out of money before you die. In addition, the record low annuity rates and interest rates on savings mean that other sources of income are severely compromised.

    2016 has also seen an acceleration in the range of equity release schemes available. Customers can choose downsizing protection; they can make monthly interest repayments; and they can include inheritance protection.

    I would say that the equity release market is going from strength to strength and is now definitively established as an important consideration for anyone planning their financial future later in life. Whilst high street lenders are often unable to offer anything to borrowers over 55, lifetime mortgages are showing a positive way forward.

    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

    Working in partnership with

    JUST
    LV
    ONEFAMILY
    HODGE
    Pure Retirement
    The changing face of Equity Release - My Blog - Kevin Woods - Equity Release Specialist, Hampshire

    The changing face of Equity Release

    5th December 2016

    Customers are utilising the empowering nature of Equity Release for interestingly different reasons as the years go by, says Kevin Woods.

    The last quarter saw about half of all equity release customers using the products to clear their mortgages. That is a 6% increase on the year before, and is a reflection of the number of interest-only mortgages set to mature after 2020. The media has called it an interest-only time bomb, and lifetime mortgages are a sensible solution for many customers.

    Contrastingly, about 16% of equity release products are sold to cover living expenses, a reflection of the decline of occupational pension schemes, the inadequacy of many existing schemes and our greatly increased life expectancy. About a third of customers are clearing unsecured debts with equity release, since about 40% of over-45s have outstanding debt, and some 15% have outstanding credit card and store card debts.

    Again, by contrast, 13% of customers are purchasing a new property through equity release. Many find that trading down is not an option, with no suitable property available in the right area. In these cases, equity release is an excellent way to bridge the gap between the value of their current property and their intended one.

    There is little doubt that the equity release market will continue to mature and flex with the demands of the marketplace and most importantly the needs of our customers. There is also no doubt that it will continue to offer the answers to what would otherwise be thousands of insoluble financial challenges.

    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

    Working in partnership with

    JUST
    LV
    ONEFAMILY
    HODGE
    Pure Retirement