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

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LV
ONEFAMILY
HODGE
Pure Retirement