As you move into retirement, you will hopefully be in a position where you can be enjoying hobbies and are living comfortably in the home you worked so hard for. But more retirees are finding themselves in the position of being cash poor but rich in assets, with thousands of pounds being tied up in your family property. So, how do you release the money tied up in your property without having to move? One solution could be equity release.
What is equity release
With equity release, you can take out a loan secured on your home and can continue to live there. The loan frees up some of the wealth you have tied up in your home, so you can spend the money on making your life more comfortable in your retirement.
How does it work?
The interest of the loan is charged on what you have borrowed and can be repaid or be added on to the total loan amount. To be eligible, your house must be worth at least £75,000 and you must be at least 55 years old.
Paying off the mortgage
When the property is sold, the money from the sale is used to pay off the loan when you die or move into long-term care. Anything left will go to your beneficiaries and if your estate can pay off the mortgage without having to sell the property, they can do so. If there is not enough money left from the sale, your beneficiaries would not have to repay any extra above the value of your home from your estate.
All the lifetime mortgages we offer have a 'no-negative-equity' guarantee (Equity Release Council standard) which means you or your dependents can never be asked to repay more than the value of your home.
Working with One Family Advice
Payingtoomuch.com has partnered with OneFamily Advice to provide Payingtoomuch customers with equity release advice. OneFamily Advice is a trading style of Family Assurance Friendly Society Ltd, a friendly society which is owned by it’s over 2 million members, manages over £8bn on behalf of its members and gives all its profits back to its members.
Payingtoomuch.com Managing Director Michael Ward said: “Entering into a lifetime mortgage is a really important decision and one we feel needs to be handled with the highest level of integrity. We believe OneFamily Advice provides this high level of service without any hard sell or bias to our customers.”
OneFamily Advice normally charges a fixed £500 fee for advice regardless of the loan size or complexity, rather than a percentage fee which is more expensive for bigger loans. As a Payingtoomuch.com customer, you can take advantage of an exclusive preferred customer rate of only £250.
There may be additional fees to pay, such as legal/valuation fees which can be discussed with OneFamily Advice during the application process.
Most of OneFamily Advice's competitors charge a percentage based on the total value of your loan which could potentially cost you thousands of pounds more than you need to pay.
If you would like to find out more about equity release, please contact our team on 01243 213966 who will arrange a call back at your convenience with OneFamily Advice.