First of all, for many people entering retirement with a reduced income, budgeting to pay for existing mortgage and credit card debts can be hugely stressful. Often people will continue working longer than they planned or consider drastic and unnecessary changes to their lifestyle by selling up and moving to a cheaper property.
Figures show that more retired homeowners are improving their later life finances by using their property wealth to clear existing mortgages and unsecured debts.
Although this will not solve everyone’s problems, equity release or other later life lending options like Retirement Interest only (RIOs) mortgages might be the right answer for some but needs careful consideration.
How is this property wealth spent?
The figures certainly show that wealth released from equity release was used as follows-
- Paying off unsecured debts such as credit cards and personal loans.
- To clear an outstanding mortgage.
- Withdrawing money to fund home and garden improvements so future proofing their homes for retirement
- Other popular uses for the released wealth was for that special holiday or helping the family with additional cash.
So, the average equity release withdrawal is now just over seventy-five thousand pounds, based on a three-month average.
How Anstee & Co can help you with retirement planning.
We are a firm of Independent Financial Advisers (IFA’s). This means that we will look at all the financial options available to you from the “whole of market”. The advice we offer is unbiased.
The initial fact-finding meeting is free and without obligation. Meetings can be organised at a time and location that is convenient for you. This can include early evenings and weekends. Home visits can be arranged.
Why not arrange your free meeting today?
Our offices are located at-
- Kettering, Northamptonshire
- Stamford, Lincolnshire
- Towcester, Northamptonshire
- Birmingham, Snow Hill Queensway
- London, Pall Mall
Additionally, our financial planners live and make use of meeting rooms in
- Market Harborough, Leicestershire
- Bedford, Bedfordshire
- Droitwich, Worcestershire
- Northampton, Wellingborough and Brackley in Northamptonshire.
Finally, we are proud members of the Equity Release Council.
These products are lifetime mortgages or home reversion plans. Equity released from your home will be secured against it.