For homeowners with an interest-only mortgage, these can be worrying times. Many will not have a repayment plan and could be looking at an uncertain financial future.
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 under-performed 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.
Equity release could be the solution.
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. 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.
Equity release. “The facts.”
These are some of the key facts that many people are not aware of:
- You can live in your home for as long as you like.
- You can protect your inheritance
- After repaying any loans secured on your home you can spend the money however you wish.
- You can move house
- The lump sum released is tax-free
- You can take the money as a lump sum or in smaller amounts. Monthly payments are an option.
- You will never owe more than the value of your property.
How Anstee & Co can help you with equity release.
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.
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Finally, why not arrange a meeting today to obtain a personal illustration and to see how we can help you secure your financial future.