More and more retirees are considering equity release as an option to boost their retirement standard of living. In this blog, Acumen follows the story of Audrey, a retiree who eased herself of money worries thanks to her equity release scheme.
Audrey Jones, who is 69, had recently been looking at ways of improving her financial situation and maintaining her standard of living. She also wanted to help her children financially. She therefore started looking into the possibility of equity release to help her situation.
Equity release advice
At first there was some trepidation as Audrey saw the equity release market as ‘a minefield’.
However, after spending much time discussing her personal and financial situation along with her future aims and aspirations with her family and financial adviser she felt confident that she was making the right decision.
This lifetime mortgage met her requirements perfectly, allowing Audrey the initial cash lump sum she required. Audrey also liked the Repayment Option, which allows repayments of up to 10% per annum of the amount borrowed. This could ultimately help her to reduce the roll up of interest.
Not only that, but if Audrey does decide to downsize and pay off her loan in full after five years, she can do so with no early repayment charge.
Audrey feels that taking out the plan has really made a difference to her lifestyle. She has been able to meet all her aims and she now feels as though she has no ‘money worries’ for the future.
What is equity release?
There are two main equity schemes available to you:
Lifetime Mortgages – With this type of equity release scheme you are not required to make any repayments over the life of the loan. Instead, interest is gradually added until repayment is taken at the end of your life or if you move to long-term care. You maintain ownership of your home and benefit from any future house price growth.
Home Reversion Plans – With this type of equity release scheme the provider buys a share of your property. When your home is sold, they then receive a share of the proceeds. You will always own your share of the property, which you can pass on to your family. You cannot reverse your decision and you will not benefit from any future house price growth.
Equity release is a lifelong commitment, one that Acumen only recommends after you’ve exhausted all other options. You should always consider alternative options before equity release.
To discuss your equity release plans with one of our dedicated team please contact us today on 0151 520 4353 or email [email protected].