• The benefits of using an online equity release calculator

    By Carrie Ann on

    Equity release is an increasingly popular means of accessing the money tied up in a property, with the Equity Release Council reporting a 40% increase in lending in 2017. These schemes are ideal for older people who may find themselves asset rich but cash poor due to ever increasing house prices, but with limited savings. Equity release schemes enable the release of tax-free cash (equity) in either a lump sum or a series of withdrawals (what is known as drawdown). The way in which you spend the money is entirely up to you. As a result, equity release can significantly…

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  • Equity release – A lifeline for those with interest-only mortgages?

    By Carrie Ann on

    Nearly one in five existing mortgage customers have an interest-only mortgage and the Financial Conduct Authority (FCA) is concerned that shortfalls in repayment plans could lead to people losing their homes. There are currently 1,600,000 full interest-only and part capital repayment mortgage accounts outstanding in the UK. They represent 17.6% of all outstanding mortgage accounts and over the next few years increasing numbers will require repayment (www.fca.org.uk/news/press-releases/fca-urges-action-on-interest-only-mortgages – 30.1.2018). In 2013, the FCA identified three residential interest-only mortgage maturity peaks. The first peak, happening now, is likely to have more modest shortfalls due to the profile of customers typically being…

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  • Equity release – A way to help millennial children onto the property ladder

    By Carrie Ann on

    The Resolution Foundation (1)  have recently published a report which reveals that the millennial generation may never own their own home and may be forced to live in and raise their families in privately rented accommodation. The millennial generation are younger people aged between 20 to 35 years old and there are currently 14 million of them in the UK. Given their age, they are often the children of baby boomers – the post war generation that were able to buy affordable homes and have benefitted from the incredible increase in property prices over the last 30 years. According to…

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  • Do you have to pay tax on equity release?

    By Carrie Ann on

    Equity release is becoming an increasingly popular way for older homeowners to access the money tied up in their homes. Figures published by the Equity Release Council in January 2018, highlighted that over £3 billion of property wealth was accessed by over 55’s in 2017 – a 40% increase on the previous year. With a wide choice of plans available, people are turning to equity release for many different reasons – from supporting their retirement incomes, to paying off existing mortgages and debt or helping their children onto the property ladder. In some circumstances, people are also using equity release to…

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  • Equity release could help finance your ambitions

    By Carrie Ann on

    Age may be compromising the employment prospects for older people with the number of over 50’s finding it increasingly difficult to find full-time work. However, the sheer number of baby-boomers now approaching retirement age with the potential to embark upon a second career and do something that they always wanted to do, means that older entrepreneurs are proving to be a big driver in the growth of self-employment. A big reason for this is that people in this situation often find themselves with both the ambition and the financial firepower to start up their own business or purchase a franchise: buying…

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  • Equity release – An increasingly popular way to repay mortgages

    By Carrie Ann on

    House prices have seen their ups and downs over the last 30 years, but the ups have far, far out-weighed the downs. In fact, there have only been 2 significant dips in house prices over this period, according to Nationwide (1). If you are of a certain age, you’ll remember house prices falling as a result of the recession in the early 1990s – when prices fell consistently between 1990 and 1994. In more recent times, the second dip followed the international banking crisis and recession of 2008-2009. If we look at the average price of new houses at the end of…

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  • The difference between saving and investing

    By Carrie Ann on

    Many people confuse saving with investing. However, the two are fundamentally different, both in their methods and their associated risks. Saving is primarily a means of preserving existing capital. In its most basic form, it is the sock under the mattress. Of course, most savers hope that their money will grow thanks to interest payments. Essentially, interest is a bank’s way of paying savers for lending their money to the financial institution. However, interest payments do not always work in the saver’s favour, particularly if inflation outstrips interest rates. This means that it is entirely possible that a pot of…

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  • Equity Release for Leasehold Properties

    By Carrie Ann on

    More house owners are looking at equity release plans to free up funds from their properties for a variety of reasons. These may range from helping family members to get a foot on the property ladder to home improvements, holidays, or even private care. One of the issues facing those looking to take advantage of equity release is whether they are eligible to apply, given that their property is owned as leasehold. In England and Wales, freehold is the term used to refer to ownership of the property and the land it is built upon. In Scotland, the term used to…

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  • Can you have lodgers or tenants on an equity release property?

    By Carrie Ann on

    With equity release, a fast-growing product in the mortgage industry, there are several issues which homeowners seeking equity release plans for comparison need to check. One question is whether you can have a lodger, or a tenant in your property and still access an equity release plan? First, it is important to distinguish between a lodger and a tenant. The former will live in the landlord’s main residence and share the living accommodation, and the landlord must live in the accommodation throughout the lodger’s time there. The lodger must not have exclusive occupation, so there cannot be a lock on their…

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  • Can Japanese Knotweed Affect Eligibility for Equity Release?

    By Carrie Ann on

    Borrowing money against your home in retirement was once a cumbersome process, but this has become easier over the years, thanks to lenders becoming more relaxed in criteria when offering home equity release plans. There are many benefits to releasing equity from your home, which are commonly written about such as home improvements, holidays etc, however one area not discussed very often is cases where homeowners are ‘unable’ to obtain an equity release mortgage. This article discusses a growing issue of certain properties ineligibility to meet lenders underwriting criteria. Occasionally, we do come across unusual reasons where lending with equity release…

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