Property may well be your most valuable asset and you need a place to live. You are probably settled in your home too so the thought of selling up in order to raise cash might not be appealing.
So you own your own home, you are over 55 but you are struggling to make ends meet. You don't want to borrow money because you are worried about making the repayments.
Could Equity Release be the answer to your dilemma?
Equity release is a specialist form of financing where both the advisors and the providers are highly regulated. Unlike conventional mortgages, Equity Release mortgages do not require you to make regular repayments. Instead, interest is added to your loan balance until the property is eventually sold. This will result in the loan balance growing rapidly, in fact, you should consider the possibility of the loan balance growing quicker than the value of your property and thus eroding the overall value of your wealth which you may be intending to pass onto future generations.
Nevertheless, Equity Release is growing quickly in popularity as a method of raising cash and to fund retirement. Some might say you worked hard to buy your property as a nest egg and an investment. What rights do your family have to expect you to live in poverty simply to provide them with a windfall when you are gone?
FSA (Financial Services Authority) regulation ensures that if you have a regulated Equity Release mortgage secured against your home your mortgage lender will not be able to reposess your property, regardless of what happens to property values, how long you live or how much your loan balance grows to.
Equity Release mortgages are not dependent on your income or how old you are either, providing you are over the age of 55 and your property and the size of loan you require matches the lenders criteria you will qualify. It might sound strange but the older you are, the more you can borrow. For example, a 90 year old is likely to be able to borrow more than double that of a 55 year old with a similar property.
We will be delighted to introduce you to a regulated and qualified Independent Financial Advisor who will be able to provide you with far more information and to provide you with a personalised illustration.
Equity Release mortgages are also available against the security of buy to let property. Currently these mortgages are unregulated. Nevertheless, we only refer enquiries for this type of finance to fully qualified Independent Financial Advisors who are also trained by The Money Centre to offer Property Portfolio Reviews.
For further information you may wish to view our buy to let Exit Strategy pages within this web site.