• Is equity release a safe option in 2018?

    By Carrie Ann on

    What is equity release? Equity release is essentially the use of the built-up equity in your property which helps to fund your retirement, home renovations, or anything that you wish to spend your money on. There are a number of equity release products available that guarantee a lump sum of cash, future regular withdrawals, or a combination of both. The two principal forms of equity release products available are the lifetime mortgage and the home reversion plan. The lifetime mortgage, as the name suggests, is long-term loan using your home as collateral. Interest is charged on what you have borrowed, you choose…

    Read More
  • Find that ray of sunshine with equity release

    By Carrie Ann on

    Since the financial crisis of 2008, a rising number of independent financial advisers confirm that they are receiving more enquiries about lifetime mortgages and the benefits of equity release in helping improve retirees standard of living. As the rewards from private pensions fall, low interest rates affect savings returns and people are requiring their retirement income to stretch further into retirement, homeowners aged over 55 are looking at what equity release benefits they could achieve. There are many personal reasons for this, and the capital generated is used in different ways. Some people look to make improvements to their own homes,…

    Read More
  • Equity release hits record high

    By Carrie Ann on

    More and more UK householders are using equity release as a means of raising much-needed funds, according to the latest figures from the Equity Release Council in 2017. From July to September this year alone, a total of £824m was released via equity release – the most ever recorded in a single yearly quarter. Since the beginning of the 2017, the figure is an astonishing £2bn of equity released by homeowners over the age of 55. Financial experts say the use of the equity release schemes has reached an all-time high, for various reasons which can be explained as follows. One of…

    Read More
  • Equity release in London rises

    By Carrie Ann on

    Homes in London are known for being extremely expensive, but this year house prices have shown signs of slowing down. This doesn’t mean that the houses are now affordable, but it is likely they will be more affordable in the future – and that isn’t all. Senior homeowners in London have started to unlock large amounts of money that have been tied up in their homes using equity release schemes. An equity release scheme gives homeowners the chance to access the money that is locked up in their property without having to actually sell their home. This means that homeowners…

    Read More
  • Ban on expat home ownership

    By Carrie Ann on

    Expats living in Bahrain are going to be banned from owning homes in areas that are not seen as tourism or investment zones. MPs have banned expat home ownership in certain areas, because it was felt that Bahraini citizens were finding it increasingly difficult to purchase property, due to the high demand pushing up prices. Expat home ownership is causing problems by pushing up prices because of foreigners’ higher spending power, according to MP Shaikh Majid Al Majid. At the moment, foreigners can invest in property and land anywhere in Bahrain, although restrictions were imposed to limit this right…

    Read More
  • 10 Equity Release Points to Consider

    By Carrie Ann on

    More and more homeowners who are retired, or approaching retirement, are looking to discover the facts about equity release. There are many important issues to be considered before choosing an equity release mortgage, or lifetime mortgage. Using our wealth of experience in dealing with homeowners age 55+, here we discuss the 10 key considerations for consumers in considering whether equity release is the right option for them, or not. Tax-free Payment Once your plan has completed, you will receive a cash advance, which will be tax-free upon receipt as this payment is classed as a withdrawal of capital, not income. Depending…

    Read More
  • Borrowing in Retirement

    By Carrie Ann on

    One significant development in the financial services industry since the financial crash of 2008 has been the indecision of the future of retirement mortgage products. With a complete review of the mortgage industry undertaken via MMR, the post retirement mortgage market was almost decimated by the demands of the FCA, as lenders withdrew their products or put a stranglehold on criteria. Previous generations either chose not to take out mortgages which stretched into retirement, or were unable to find a suitable lender. The end of jobs for life and the emergence of flexible retirement ages through early retirement plans in…

    Read More
  • Why knowledge is key in the equity release market

    By Carrie Ann on

    Anyone even vaguely contemplating equity release ought to be aware that, as with so many things, knowledge is power. Although equity release receives increasing amounts of press coverage, many people remain unsure about what exactly it is, or how to get the best equity release deal. The equity release industry itself bears some responsibility for this knowledge gap. That said, many providers and other interested parties are making excellent efforts to ensure a wider general knowledge and understanding of the ins and outs of equity release. A basic and, to some, obvious rule of thumb is that no-one should consider…

    Read More
  • Using equity release money to go on holiday

    By Carrie Ann on

    While ‘spending the children’s inheritance’ used to be taken with a pinch of salt, many older people are releasing the money in their properties to enjoy it for themselves. Indeed, one in eight people taking out equity release are using the cash for holiday adventures, according to Retirement Advantage research. Other people intend to spend their nest egg on buying a car (9%) and investing in a new property (5%). However, the most common reason for applying for equity release was to carry out improvements to the home and garden. Many people are sitting on a small fortune in their…

    Read More
  • Would You Support Your Parents to Take Equity Release?

    By Mark Rumney on

    Having advised on equity release schemes for over 17 years, I’m fully aware withdrawing capital from your home is a very important decision. It is probably the biggest financial decision you may take during later life. It is, of course, usually the largest asset by far that any of us will ever own, and will have been paid for through hard work during our working lives. It’s therefore fully understandable that clients who are considering a lifetime mortgage often ask these similar questions: • Are many people doing these schemes? …

    Read More