There are many reasons to consider a lifetime mortgage. It may provide an opportunity to gift money to children, provide a better quality of life in retirement or it may be a very sensible piece of tax planning. Whatever the reasons, our free presentation and our educational videos will provide you with some valuable information about lifetime mortgages before speaking with an adviser.
In our free-to-download presentation, we cover the following topics
Equity is the value of your home, minus any mortgage or loan secured against it. A lifetime mortgage allows you to access equity and turn it into funds for your retirement
If you are considering an equity release, we recommend that you complete the equity release video set before talking to an adviser to maximise the benefits from your initial meeting and to ask any further questions that you may not have answered in the videos. The video set takes just 30 minutes and covers the following topics.
What is equity release and some important things you need to think about.
How equity release may help and the importance of good financial planning.
How financial support from the State might help and how means-tested benefits could be affected.
Lifetime mortgages and Home Reversions Schemes.
The amounts you can typically raise and the costs for you and your estate.
Understand how interest rates impact on your overall costs and other expenditures you need to consider.
The impact of changes in house prices, paying your plan off early, and what happens if you move permanently into care or die.
Some alternative ways to boost your income or reduce your costs.
Some alternative later life borrowing options.
The application process, what to expect, and the value of professional advice.
Is the equity release plan regulated by the Financial Conduct Authority (FCA)? The FCA regulates the equity release providers and sets out the rules they must follow, to ensure that plans are presented in a clear way
Moving to a cheaper property could be another option Although many people feel at home in their property and don’t want to move, you should be aware that downsizing could be another solution
Taking in a lodger could be another way to raise extra funds You may not be comfortable with the invasion of privacy this would bring, but it is an option you should consider before going through with equity release This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.
An equity release plan will reduce the size of your estate By releasing funds in your lifetime that would otherwise stay tied up in your home until you die, an equity release plan may reduce the size of your estate and the amount that you would be able to leave to any beneficiaries as an inheritance
Your entitlement to means-tested benefits could be affected It is important to discuss with your adviser whether releasing money will have an impact on your means-tested state benefits
Think carefully before securing other debts against your home. By extending the term of these debts you will be increasing the overall cost.
This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration. You should always speak to an independent qualified equity release adviser before taking out any equity release product.
