Finding the Perfect Equity Release Deal
Equity Release Deals
Looking for the Best Equity Release Deal? Here's What You Should Look Out for When Searching for the Perfect Deal Before Signing Up...
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Need More Money For Your Retirement?
Wondering how you’re going to finance your retirement or afford that once-in-a-lifetime holiday you’ve always dreamed of?
What about releasing equity from your home?
It can be life-changing, but finding the right deal can feel like navigating a minefield.
How do you find the best option with so many plans to choose from?
We’ll walk you through every step and detail you have to know.
Through this article, we’ll help you learn:
- What equity release deals are.
- How equity release works
- The different types of equity release schemes available
As a leading equity release information provider, we at EveryInvestor strive to offer the latest news covering this expansive topic.
We, therefore, analysed the market to help you discover the best equity release deals available.
Here’s what we’ve found!
What Are Equity Release Deals?
Equity release deals allow you to turn some of the value of your home into a lump sum of cash, regular payments or both.
In other words, you can unlock the cash that’s trapped in your property to use however you wish in your retirement.
Let’s have a look at the 2 types of equity release schemes.
A lifetime equity release mortgage enables you to borrow a tax-free cash lump sum secured against the value of your home.
The best part?
You’ll still own your .property.
As the name suggests, these plans will last the rest of your life.
The total amount borrowed, plus interest, will only be due for repayment when you die or move into permanent long-term care.
The loan amount is usually paid off with the money received from the home’s sale.
It’s easy to see how this has become one of the most popular ways of accessing much-needed funds for homeowners aged 55 and up.
Home Reversion Plan
A home reversion plan allows you to sell all or part of your property to a provider in exchange for a tax-free sum of money, a regular income or both.
You must be aged 60 and above to qualify.
Although this means you will no longer be the sole owner of your property1, you will have the right to continue living there until you pass away or move into a care facility.
In other words, it will still be your home as you know it.
What’s the good news?
Home reversion plans don’t require you to make any monthly payments and, as it is not a loan, no interest2 will be charged.
It’s important to note that home reversion companies purchase their share of your property at below market values.
When the sale of your home is finalised, the home reversion company will receive their percentage of the proceeds.
How Do Equity Release Deals Work?
Equity release deals work by giving you access to money tied up in your home without the need to sell, downsize or move – provided you are over 55.
Before you can gain access to the money, you will need to talk through your options with a qualified equity release adviser.
They’ll come up with the perfect plan based on your unique circumstances.
Once you have found the right deal, it usually takes between 6 to 8 weeks to release the equity from your home – provided the application process is completed without any snags.
Why’s It So Important to Find the Best Equity Release Deal?
Finding the best equity release deal is important because it can mean the difference between living a comfortable retirement or doubling your debt3.
Although it’s an attractive option for many retirees, it’s not a decision that can be taken lightly.
Equity release deals aren’t without their drawbacks.
They could have an impact on your entitlement to means-tested benefits.
Furthermore, they could reduce the total value of your estate and any potential inheritance left behind do loved ones.
That’s why it’s imperative to find the best deal to suit your circumstances.
5 Tips For Finding the Best Equity Release Deals
Here are our top 5 tips for finding the best deals:
- Speak to a qualified adviser.
- Consider all costs involved – including consultation fees, advice fees, and application fees.
- Make sure the lenders you consider are members of the Equity Release Council.
- Shop around.
- Include your loved ones in your decisions.
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Which Company Offers the Best Equity Release Deal?
The company that provides the best equity release deal for you will be determined by your unique set of circumstances.
To give yourself the best start, ensure that the providers you consider offer a no negative equity guarantee, are members of the Equity Release Council, and have a selection of flexible deals to choose from.
How Do I Choose the Best Equity Release Deal?
You can choose the best equity release deal based on the interest rate offered. Bear in mind that these rates are determined on a case-by-case basis and, as such, should not be your sole consideration.
Instead, do your research and educate yourself on the advantages and disadvantages of equity release.
Next, find a qualified adviser and run through your financial circumstances and goals.
Finally, make sure that you only consider deals offered by members of the Equity Release Council.
Releasing equity can offer a life-line to many retirees, but you need to make sure it’s the best solution for you. Take the time to shop around.
Speak to a qualified adviser and include your loved ones in the discussions; they can offer a different point of view and help you find the best equity release deal.
Finally, don’t feel pressured to commit to anything you are not 100% comfortable with.
What Would You Like Help With?
HOW MUCH EQUITY CAN YOU RELEASE?
Most people are using equity release as a means of retaining the use of their house while also obtaining a lump sum or a steady stream of income. Get matched with an expert and check your eligibility for equity release options.
Use our free equity release calculator & see how much you can release today.