Around 270,000 households have benefitted from equity release over the last 20 years, raising more than £12 billion in the process. More and more people now consider equity release as part of their financial planning for retirement. Deciding on which plan is suitable for you can be complex and there are some associated risks to consider. So, it is a good idea to seek financial advice before making your decision.
Our team at Acumen can help you to understand the options available to you when it comes to equity release schemes, and how can benefit your financial planning for retirement. Whether you are looking for lifetime mortgage advice, or to understand how home reversion plans work, Acumen can guide you towards the best option for you. Equity release schemes can give you access to a sum of money from your property, which may be necessary to boost your retirement income.
Types of equity release schemes
Lifetime mortgages are a type of equity release scheme where you are not required to make any repayments over the life of the loan. However, you can choose to make repayments. Another option is letting the interest gradually add up until repayment is taken at the end of your life or if you move to long-term care. With this equity release option, you maintain ownership of your home and benefit from any future house price growth. For more lifetime mortgage advice, talk to our team today.
Home Reversion Plans
Home reversion plans are another type of equity release scheme, but how do home reversion plans work? They allow a provider to buy 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 though, so it is essential to seek advice before making such a decision.
What are the benefits of equity release?
If you are aged 55 or over, and a large majority of your money is in assets such as your house, taking the option of equity release allows you to spend the value of your home whilst living in it. This could appeal if your pension hasn’t left you with a sufficient amount of funds to live comfortably in retirement.
Further benefits of equity release include:
- Being able to stay in your home
- Retaining your independence to make the most of retirement
- Releasing a cash sum that could make a difference to your retirement
Is equity release safe?
Equity release is a lifelong commitment, one that we would only recommend after exhausting all other options. If you are unsure if equity release is the right option for you, talking to one of our qualified experts could help clear up any confusion. We recommend that you consider alternative options before equity release.
Alternative options include:
- Ensuring that you are claiming all benefits and grant entitlements
- Moving to a smaller property to release funds
- Seeking assistance from your family
Protection from the Equity Release Council
The Equity Release Council is the industry body for the equity release sector, which works to ensure that products are safe and accessible for consumers. It represents providers, qualified financial advisors, lawyers, intermediaries and surveyors who work in the equity release sector.
Talk to an Acumen financial adviser
Financial advice from Acumen can help to breakdown how equity release schemes work and what types of equity release schemes are available to you. Deciding on which plan is suitable for you can be complex, and there are some associated risks to take into account. With our extensive equity release knowledge base, we can guide you through the various options to help you find you the right solution for you.
Acumen can provide an experienced and highly qualified financial adviser to discuss the best equity release options for you. For lifetime mortgage advice, or to learn how home reversion plans work, talk to Acumen today by calling 0151 520 4353 or email us at email@example.com.
We ensure that our product innovation is combined with consumer protection to offer you the best equity release options. If you are looking to free up capital locked in your home, increase your income, maintain your standard of living, or pass on wealth to your children, talk to one of our dedicated team today about how to access equity release.