Facing economic challenges when you have stopped working and consequently missing out on a regular income is a common situation most people find themselves in. Ironically, these are times when one is usually most hit by an array of financial needs. Should you find yourself in such a situation, do not fret. Instead, consider equity release, since you are only poor in cash but rich in assets.
Taking into account that you have probably heard a profusion of myths, leaving you crestfallen about equity release, this article demystifies the subject and draws your attention to the following valuable pointers:
Know the right time to release your equity
Take time to review your options before settling for equity release. Adopting this scheme remains a salient life decision, and compromising your choice is a costly endeavour that you can’t afford to consider. By all means, involve your family and close friends in this decision. Clearly, have your goals in mind and strictly consider your priorities. Do not make any impulsive moves while considering equity release. Patiently appraise all details. This is the first integral step in ensuring you get the most desirable outcome from the equity release.
Involving a professional adviser grants preeminent results from equity release
Despite a number of people thriving on the notion that getting professional advice on equity release is expensive, striking such deals solely based on your knowledge can turn out to be more disadvantageous. A professional adviser will give you reliable insights on APR (annual percentage rate), allowing you to settle on the perfect lifetime mortgage interest rates and consequently achieving a responsible equity release. Additionally, he/she will ensure you only borrow what you need, which is a priceless gem in the long run. Furthermore, professional advisors can link you with legal support, ensuring you are fully protected while releasing your equity.
You can still live in your home
Do not be blindsided by professions that you risk losing your home by releasing your equity. Simply go for the lifetime mortgage option. This selection accords you the guaranteed right to remain in your home for the remainder of your lifetime or until you get admitted into long-term care. This assurance is recorded in the offer where both you and the lender append your respective signatures. Once more, the importance of getting professional help while releasing equity is lucid.
You won’t leave any debts to your loved ones
Leaving debts to loved ones due to adopting equity release is another fable that leaves many agonized. Nevertheless, despite releasing your equity, you won’t be leaving any debts for your loved ones to bear. The Equity Release Council has provisions in place to ascertain that you can’t owe more than the value of your home. In fact, by borrowing only what you need, rather than the entire value of your home, you are still left with much in terms of assets. Therefore, instead of overpowering debts, you would be leaving your children, or any other beneficiaries for that matter, a sizeable inheritance.
Make sure you understand your options for equity release to maximize its use.