Equity Release - Points To Consider Before Entering into Equity Release

All equity release products involve borrowing against, or selling all or part of your home, and may work out more expensive in the long term than downsizing to a smaller property, and may affect your entitlement to State benefits and grants.  Therefore before deciding on whether equity release might be right for you, we would recommend that you consider the following alternatives:

Downsizing

This could be a cheaper way of releasing equity from your property, but its not without its problems and you may be unwilling to face the stress or to leave good neighbors.

Using Existing Savings

Have you already got sufficient money to meet your needs?  If so we would be the first to recommend that you use these before applying for equity release as there is no point in just borrowing money as inevitably this will cost more than you will receive in interest on any savings.

Could your family help you instead?

Whilst you may prefer not to ask, should you want to leave them money and your children are in a position to help you, this should mean they will receive more money.

Are you entitled to State benefits?

The most specific means tested State benefit aimed at helping people over 60 is pension credit.  If you are not receiving it and haven't applied to see if you would qualify we would suggest you do so especially if you need more income as this could make all the difference, especially as if you qualify for guaranteed pension credit you would also get your council tax paid for you by council tax benefit.

Should you already qualify for these benefits, taking out any equity release plan could affect them.  This doesn’t mean you shouldn’t take an equity release plan but it means it is important to understand the impact it may have.  Our experienced equity release adviser will discuss how you can minimise any impact with you.

Are you eligible for a grant?

If you are looking at equity release for some essential home improvements / modernisations you may be able to get a grant.  It might be worth talking to your Local Authority but you may have to wait until they have funds available.

Further advice

Everyone is different and have different circumstances.  As such whilst the above are the main alternatives you may have, their may be other alternatives which could be considered.  If you are considering taking out an equity release plan, we would like to offer you the chance of having a free no obligation home consultation to fully explore all your alternatives and help you evaluate whether equity release would be right in your case.

If you would like to make an appointment, please fill in our online enquiry form and we will contact you to discuss a suitable appointment. Alternatively please call us on  0800 970 4883.

"Equity release" includes home reversion plans and lifetime mortgages. To understand the features and risks ask for a personalised illustration.

Further information about equity release

Clicking on any of the following links will allow you to find out more about key information on releasing equity from your home.

What types of schemes are there | How much can I release | How long does it take | What costs will I incur | How to request a brochure |