In our last post, we looked at what equity release is. This time we will look at some of the things that equity release can be used for.
Equity release can be a useful solution for our clients in many different scenarios:
- Repaying debt – usually repaying an interest only or endowment mortgage which is coming to an end where insufficient funds are available to repay the amount due; or replacing expensive credit card debts or personal loans at a much lower interest rate.
- Increasing income – for those who may be struggling to meet mounting living expenses out of a low or fixed income.
- Maintaining or improving a retirement lifestyle – by funding new cars, caravans, motorhomes and expensive one-off family holidays.
- Improving and maintaining a property – replacing roofs and windows, redecorating and building an annexe.
- Funding private medical treatment – to avoid a potentially lengthy, painful and lifestyle limiting wait for NHS treatment.
- Family financial planning – raising funds to help with grandchildren’s education costs, to help family members buy their own property or to give heirs an early inheritance, with the added benefit of seeing them enjoy the money which you don’t get when transferring wealth post-death.
- Funding care costs – particularly for those who want to receive care in their own home rather than move into a residential care setting.
Equity release involves borrowing money against your property and it can affect your entitlement to state benefits and/or state funding for care costs. If you take out an equity release you will incur a debt and interest costs. Other more appropriate solutions may be available and professional advice is vital.
If you are considering whether equity release might be right for you, contact one of our qualified advisers for a free initial consultation. To arrange a no obligation appointment, contact us today by telephone on 01626 242500 or email enquiries@wbwcfp.co.uk.
