Retirement and Equity Release: How to Choose an Option
Equity release is a popular choice for many retirees. It allows you to keep your home while accessing some of the equity that you’ve built up over the years. If you are considering this option, then it is important that you understand how this process works before signing any contracts.
Equity release works best for people who are no longer able to work and have built up a valuable equity in their home.
If you’re considering this option, then it is important that you understand how the process works before signing any contracts. Equity release can be complicated so it’s best to ensure that everything is understood beforehand – including all of the costs involved with securing an equity release mortgage, as well as limitations on what can be accessed through your property when you take out such a loan.
Remember: if at any time during or after the agreement period (typically 25-30 years) there will not be enough money left over for repayments, companies won’t ask for more than they need to cover outstanding balances; but if someone dies within six months before final repayment, then the company will ask for all outstanding payments.
You should also know that taking out an equity release is likely to have a negative effect on your credit score, and may even affect any entitlement you might be able to claim as part of the means-tested benefits system if this has not already been taken into account. However, when shopping around for loans, it’s important to look at different lenders so that you can find one who offers competitive rates without compromising on terms and conditions.
Either way – whether or not you’re considering equity release yourself – understanding what these loans entail in advance is key in ensuring that they are used correctly from start to finish.