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