What with a growing number of over 55's finding themselves unemployed releasing the stored money, or equity, from their homes can seem like an attractive option. While it is undoubtedly a way of gaining quick income, equity release can also pose a number of risks. One of the biggest worries of most home owners considering equity release is leaving their children or beneficiaries with some form of debt.
Deciding on equity as a source of financial income is undoubtedly a big decision, so it's vital for those who are considering it to be aware of their personal options. If at all possible it is advised that those thinking of unlocking their home equity seek out a trusted independent financial advisor specialising in equity release before signing on the dotted line. Those registered with the FSA are empowered to give completely impartial advice to guide you in what's best for you.
A Lifetime Mortgage allows the client to maintain the title of home ownership in return for a loan taken out on their home. Though it doesn't always involve monthly repayments, some plans will offer the option to avoid rolled up interest being charged in one intimidating lump sum at the end of the loan. When the customer dies or goes into residential care their property is then sold to cover the cost of the loan repayment.
Something else that's worth noting is getting an income from equity release will likely have a negative impact on any means tested benefits you may currently or be set to receive. Those considering a plan should always weigh up the financial gain and loss not just now, but on the horizon.
If you are asset rich and cash poor with no, or financially stable, dependants releasing equity is a far more attractive option. With the right equity plan for your circumstances and financial protections put in place, a regular equity income can open up the world of self-employment or recreational scope for the over 55's. Providing the risks are fully weighed up before signing on the dotted line, there's no reason equity release shouldn't be considered a valid way of unlocking financial freedom in our retirement years.
Deciding on equity as a source of financial income is undoubtedly a big decision, so it's vital for those who are considering it to be aware of their personal options. If at all possible it is advised that those thinking of unlocking their home equity seek out a trusted independent financial advisor specialising in equity release before signing on the dotted line. Those registered with the FSA are empowered to give completely impartial advice to guide you in what's best for you.
A Lifetime Mortgage allows the client to maintain the title of home ownership in return for a loan taken out on their home. Though it doesn't always involve monthly repayments, some plans will offer the option to avoid rolled up interest being charged in one intimidating lump sum at the end of the loan. When the customer dies or goes into residential care their property is then sold to cover the cost of the loan repayment.
Something else that's worth noting is getting an income from equity release will likely have a negative impact on any means tested benefits you may currently or be set to receive. Those considering a plan should always weigh up the financial gain and loss not just now, but on the horizon.
If you are asset rich and cash poor with no, or financially stable, dependants releasing equity is a far more attractive option. With the right equity plan for your circumstances and financial protections put in place, a regular equity income can open up the world of self-employment or recreational scope for the over 55's. Providing the risks are fully weighed up before signing on the dotted line, there's no reason equity release shouldn't be considered a valid way of unlocking financial freedom in our retirement years.
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