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 in the first six months of 2022 was £100,468. This is £5000 higher than in 2021.
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 meeting is at our cost, so why not contact us today? A meeting can be arranged at your home or our Head Office located at-
- Kettering, Northamptonshire
Additionally, our financial planners live and make use of meeting rooms in-
- Market Harborough, Leicestershire
- Bedford, Bedfordshire
- Northampton, Wellingborough and Thrapston in Northamptonshire
We make full use of video conferencing facilities such as-
- Zoom
- Microsoft Teams
- Skype
- Facetime
We can also arrange a conference telephone call. So, there is no need to visit an office as all work can be handled remotely. The choice is yours. Our expertise covers all aspects of financial planning including pensions, investments and mortgages.
If you have any thoughts on this article, “ Property wealth is used to clear unsecured debts”, then we would love to hear from you.
We are proud members of the Equity Release Council.
Finally, the information contained in this article is for information purposes only and does not constitute financial advice. Anstee & Co. is authorised and regulated by the Financial Conduct Authority (FCA).
These products are lifetime mortgages or home reversion plans. Equity released from your home will be secured against it.
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