Blue House Equity Release

As the popularity of Equity Release has soared, there are many misconceptions about equity release which hold people back from considering it and changing their lives.

So, let’s debunk some myths about Equity Release/Lifetime Mortgages.

Myth 1. There will be nothing left for my loved ones.

Lifetime mortgages have become increasingly flexible in recent years, and there are now plenty of plans available which allow you to protect a portion of your equity for inheritance.

If you don’t want your loved ones to have to wait until you die before receiving financial support from you, you could use equity release to provide them with an early inheritance.

Bear in mind, however, that using a portion of your equity now means there will be less available to you later and may reduce the value of your estate.

Myth 2. I still have a mortgage on my property, so I will not be able to release equity.

Having a mortgage does not mean that you cannot release equity. In fact, using property wealth to clear an existing mortgage is one of the most popular uses of an equity release/lifetime mortgage.

Myth 3. I will not own my property anymore.

Equity release does not mean selling your home to a lender: you are simply borrowing against it, and you still remain ownership.

Unlike a conventional mortgage, a lifetime mortgage has no fixed end date, so the mortgage lasts for as long as you need it.

Myth 4. I will be paying monthly payments for my lifetime mortgage.

There are no monthly payments to make with a lifetime mortgage – unless of course, you choose to make them.

Some plans, however, allow you to make optional, penalty-free repayments of up to 10% per year of the mortgage balance and there is even a plan that will allow you to make payments of up to 40% now.

If you choose not to do this, then the interest on the amount you have borrowed will roll up over time.

This loan and any interest must be paid back when the property is sold, either when you pass away or move into permanent long-term care.

If you have taken out an equity release product as a couple, it will continue for as long as one of you remains in your home.

Myth 5. I will end up owing more than my home is worth.

Provided you take out an equity release plan with a provider approved by the Equity Release Council, your plan will come with a no-negative-equity guarantee, which ensures you will never owe more than the value of your home when it is sold.

In the unlikely event that your home sells for less than the amount of the mortgage, the remaining balance will be written off, this is called the No Negative equity guarantee.

Typically, once the mortgage has been repaid, any remaining funds will be paid to you or the beneficiaries named in your will.

For more information about your equity release options, please contact Chris at Blue House Equity Release today

**Remember that if you are in receipt of means-tested benefits, releasing equity may affect your entitlement. Fortunately, there are a range of plans available to help you manage the impact of a lifetime mortgage. You should seek professional advice on the best option to suit your needs and ask an adviser for a personalised illustration to ensure you understand all the features and risks.

The Equity Release market has continued to give the over 55’s options

We have seen an increase in the number of equity release applicants looking to provide money to relatives as a result of the COVID 19 following its impact on family finances.

The majority of older homeowners decide to opt for equity release in order to meet their financial needs, with many borrowing to boost income or provide for things such as holidays, purchasing a holiday home, home improvement, clearing a mortgage or other debt or funding other purchases, like a new or vintage car for instance.

We also find equity release borrowers are frequently setting aside money from the release to help their children and grandchildren for things like, getting onto the property ladder, helping with funds for their business, paying for weddings or helping with university fees amongst many things.

I’m expecting enquiries to continue to grow/boom as moreover 55’s decide that they not only want to change their own lives but also help their family by unlocking money from their home using a Lifetime Mortgage.

Providing cash to their children to help fund business following the difficulties during the COVID19 period and also helping with deposits so their children can get onto the property ladder or even to be able to make that next property purchase, having a growing family requiring a larger property.

For more information about your equity release options, please contact Chris at Blue House Equity Release today

The Mortgage and Equity Release markets have been affected like most during these difficult times with COVID19 and there has been a reduction in applications.

However, there is still tremendous interest out there, with so many who have been waiting things out and finding that now is the time to take action and get things moving.

Now that Lockdown is being eased and with great caution, of course, the markets are starting to see life and interest is beginning to flourish, so now is the time for homeowners over 55 to change their lives by visiting equity release and the lifetime mortgage for the things they want, by unlocking money from their home.

Not everyone over 55 has woken up today thinking they must do equity release and thought about where to go to find out about a lifetime mortgage. As a potential solution to help or in some cases that they should take a look at the lifetime mortgage they did a number of years ago where interest rates were a lot higher than those today and where a rebroke could potentially save them money over their lifetime, therefore taking advantage of the lower interest rates of today.

A Lifetime Mortgage can help change lives, whether it’s a financial problem or an aspirational dream or both, It does not cost you to speak with me confidentially at Discover Equity Release to find out if an Independent, Whole of Market, Lifetime Mortgage will work for you.

For more information, contact Blue House Equity Release today