Equity Release on the rise but be very careful

Fortunately, there is a body that was created specifically to protect you in equity release matters. Safe Home Income Plans , under the Equity Release Council, is a trade body with a strict code of conduct. If how does equity release work go with a SHIP accredited company, you are basically covered against the worst possible practices. Your pension credits and other state benefits might be affected if your income or savings exceed the limits set by government.

Both Lifetime Mortgages and Home Reversion Plans are regulated by the Financial Conduct Authority . As responsible Independent Financial Advisers in Tunbridge Wells, our clients can trust us to incorporate the nine principals of the Financial Vulnerability Charter into the way we operate. This approach makes us ‘a safe pair of hands’ when it comes to managing your finances.

Looking to whether Joseph expects interest in equity release and later life lending to continue, he said there is a ‘yes’ and ‘no’ element to this. He believes there is a simple fix to the above conundrum; ease the cost burden on older borrowers wanting to downsize, a stamp duty waiver for those downsizing by 30% plus has long been proposed. Another great example for using Equity Release is to raise money to give to your children or grandchildren.

Q Should I explore equity release when my two-year fixed-rate deal (on my 15-year repayment mortgage) comes to an end? I have a number of decent local authority and private pensions, and also £40,000 in additional voluntary contributions, which should cover any mortgage payment after retirement. If you own high-value real estate, releasing capital from the property which you can then invest elsewhere for a higher rate of return, can make a lot of sense.

With Think Plutus, there are some distinct advantages you get that ensure our advice is right for you. Our nearest and dearest sometimes need help, and we find ourselves wishing we had the cash to be able to assist in their time of need. By unlocking some of the value of your home, you could give the financial support your loved ones need. There is no one answer for this question, as the amount you can release differs from customer to customer based on the value of your home, your age and your personal circumstances and preferences. Our IFAs are committed to the highest standards of conduct, compliance and ethics. We will act in our clients’ best interests at all times, managing any conflicts which may arise.

This can quickly increase the amount that is owed on your death or if you have to go into long-term care. Downsizing protection may be available, meaning that if you want to move, and apply to transfer your lifetime mortgage to a new property that doesn’t meet the provider’s lending criteria, downsizing protection can help. The Council promotes very high standards of conduct and practice in the provision of advice on Equity Release and to the characteristics of products.

When the property is sold, the private company who purchased your property would receive the proceeds of the sale . With many rolled-up interest Lifetime Mortgages, you can make occasional capital repayments without penalty – typically from 10% or even 40% each year. A No, you are not too young to consider equity release, as the minimum age is typically 55, but you are too young to be able to raise the £130,000 you will need to clear your current mortgage. If you wait until you are 62, the most you could release would be a slightly higher £123,900.

The owner of a property valued at £500,000 has an outstanding mortgage of £400,000. When they marry, they decide to transfer half the property to their new partner. There is clearly scope for partnership development of equity release schemes bringing together central government, local government, the voluntary sector and the private sector. These schemes have proved of interest to people who do like the roll-up effect of interest on traditional equity release schemes. Put simply, if you’re over 55, Equity Release is a way of accessing the value tied-up in your home, without having to sell up and move out.

We as Equity Release advisers, along with our Wealth Planner colleagues can help you to understand the steps involved. We can talk you through your options, the effects this might have on state benefits, tax and your obligations. For joint mortgages, ERC free repayment within 3 years of first death or move into long term care.

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