Equity release. What is it and is it right for me?

Recent industry figure have shown that £1.25 billion has been borrowed in the first half of this year through equity release schemes. This amount is 34% higher than the same time last year. Equity release is for the over fifty five’s. The figures reveal that the average pensioner released over £70,500, using the money for debt repayments, home improvements and to help family financially.

So what is equity release?

Equity release allows a home owner to release some of the cash built up in their home. Known as equity. This is done without the need to move home.

The amount you can raise depends on the following –

• How old you are
• The value of your home
• How much you choose to borrow.

Historically equity release products have been inflexible. With changing client demands the industry has seen a period of innovation. On offer now are capital and interest paying loans, fixed Early Repayment Charges and products that require no affordability assessments.

Is equity release available to everyone?

To qualify for equity release you must be-

• Aged fifty five or over.
• Own your own home.
• Live in the United Kingdom.

The money you release is tax free and can be spent on whatever you like. Clients have used the money to gift to their children and grandchildren to help them by a property. Making home improvements to maintain independent living. The prepayment of existing debts such as mortgages and credit card debts.

Why not just downsize?

Most people still want to stay in their home, often because of happy memories or that they are close the family and friends. About a quarter of people still plan to downsize in retirement. Although downsizing proves a popular option many retirees are surprised at how little money is available once all the fees and taxes associated with moving house are taken into account.

How Anstee & Co can help you?

Equity release is not right for everyone and should not be rushed into. Our team of expert advisers have additional qualifications to be able to offer equity release mortgages. We will get to know you financial position and what you are trying to achieve before we make any recommendation. At the meeting you may wish to involve a family member or a trusted friend. The Initial meeting is at our cost. We will not undertake any work for you until we have advised you of our charges.

Anstee & Co have offices in Kettering, Stamford and London. Our financial advisers make use of meeting rooms in Northampton, Bedford, Wellingborough, Towcester and Warwick. Financial advice can also be given at your home at a time that is convenient to you. We cover Northamptonshire, Lincolnshire, Bedfordshire, Warwickshire. To contact us click here.

We are members of the Equity Release Council.