Considering An Equity Release? Read These Tips
Are you are a homeowner and uncertain about how you are going to fund your home improvements or retirement?
An equity release could solve your problems. An Equity Release allows you to draw upon your home’s overall value. This provides you with a useful cash injection and avoids you having to relocate.
It might sound like a wonderful solution, but it doesn’t come without potentially expensive fees. Plus it could reduce the money you leave to your loved ones in your will.
Read this guide and consider if this is the right choice for you or if there are other ways you can raise your income.
Why do you need the money?
Equity release is a potentially long term decision, and you need to be 100% sure it’s the right one for you. Think long and hard about why you need the release in the first place.
You could need it to fund a dream holiday, buy a new car or just to give you comfort in your retirement. Consider other alternatives before taking the leap such as borrowing from family.
If you do want to go ahead, always include your family in your plans. You don’t want all of this to be sprung on them a few months down the line.
Find a reputable provider
If you decide that equity release is the right step for you, always use a reputable supplier. Which Equity Release compares the packages available from a number of providers so you can find the right one for you.
You just need to fill in some details, and they will show you an approximated calculation on the return you qualify for. Always read the set criteria for each provider as this will vary.
Some may require your home to be worth over £70,000, and others will be £100,000. Read the small print and enquire about additional fees. It will be beneficial to do this research as it gives you the opportunity to seek out the best offers.
If you are still unsure, seek out a potential provider and ask for their recommendations and advice.
Only borrow what you need
This is an important thing to consider. Sit down and determine exactly how much you are going to need. Some schemes offer a lump sum or money that is released overtime.
Obviously this is a personal preference but you should seek professional help to help guide you through the process. Money that is released at intervals may be a more cost-effective option for you if you don’t need the money right away.
Sit down with your family and calculate roughly how much you intend to borrow and try and stick to this amount.
Equity release is becoming more and more popular with people utilising the value of their homes to enjoy the later years of their lives. Always talk to experts before you start the process and don’t feel pressured into borrowing more than you need to.
It can make a huge difference to your life, but you need to be committed to it.
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