The worst affected are people coming up to retirement. They are likely to have taken out an endowment plan which was designed to repay the capital amount of the mortgage off and hopefully leave a surplus. Unfortunately, many of these plans underperformed leaving a shortfall and unable to repay their mortgage.
Many now are coming to retirement with an outstanding mortgage and may feel that the only way forward is to sell their home and rent. Others may look to delay retirement and extend their mortgage term.
For older borrowers, it can be difficult to get a new mortgage so many may turn to equity release.
Put simply equity release is a means for people over the age of 55 to release cash from their property without moving home. So, the most common type of equity release is known as lifetime mortgages. They work by you releasing the equity that has built up in your house. You do not have to make monthly repayments and the interest rolls up (compounding). These lifetime mortgages are repaid usually from the sale of the property when you pass away or move into long-term care.
We are a firm of Independent Financial Advisers (IFA’s). This means that the equity release advice we give is unbiased and from the “whole of market” We look at all the financial solutions available to you. Not just an equity release mortgage.
Remember that equity release is a long term financial commitment and is not right for everyone. It is often a good idea to involve your family before making any decisions.
Additionally, we are proud members of the Equity Release Council and are directly regulated by the Financial Conduct Authority (FCA).
Why not arrange a face to face meeting to find out more. Also, we can come to your home or we can meet you at one of our offices located at:
Finally, why not arrange a meeting today to obtain a personal illustration and to see how we can help you secure your financial future.