At 55+ Equity Release in Tunbridge Wells, you’ll find all the information needed about the different types of equity release available and the costs associated with equity release schemes. Specialist adviser and lifetime mortgage broker Jan Bull reveals some handy hints that could help.
Releasing cash from property to pay off an outstanding mortgage, undertake essential home renovations or buy a dream holiday is a good solution to financial challenges – but only if you take personalised advice, according to a Tunbridge Wells independent equity release specialist.
Jan Bull, head of 55+ Equity Release, believes that people who could really benefit from taking advantage of equity release packages are being put off by ill-informed scaremongering in the national press.
“There is a wide range of products and financial packages on the market, and mistakes can be made if people do not make the right choices for their circumstances and their families,” she says. “Equity release products are not one-size-fits-all, off-the-shelf solutions.
“Unfortunately, many people are facing significant financial pressures when they start researching equity release. That pressure can lead to snap decisions, which may not be the wisest in the long run.”
Jan’s top tips for everyone thinking of taking advantage of equity release financial products include:
- Whenever possible, involve families and everyone with a longer-term financial interest in the property
- Products are available alongside lifetime mortgages so that not all people have to see balances increase. Some lenders allow mortgage interest to be paid, or overpaid, so that the debt reduces over time
- Check out the interest rates. These vary between lenders, depending on the type of mortgage on offer. They can range from below 5% fixed for life to around 7% fixed for life
- Before committing to an equity release product, work through the illustration of the mortgage plan with an independent equity release adviser and with a solicitor. This will clarify what the roll-up interest will be and the conditions for any early repayment charges
- Discuss how circumstances may change in the future. For example, if you go into care, the mortgage has to be repaid. This is the same for residential mortgages, where a fixed rate product has been taken and not specific to equity release
- There aren’t necessarily any early repayment charges though. If someone moves home, the mortgage is portable to the new property (subject to the property being approved) and some lenders don’t make any early repayment charges after a fixed period