What is equity release and is it right for me?

0
171

IF you’re a homeowner over the age of 55 and you would like some extra cash to enjoy the retirement you deserve, then equity release could be right for you.

In a nutshell, equity release means you’re releasing some of the cash tied up in your home without having to sell up and move.

So, if you’re over 55 and you own your own home worth over £70,000 then you may be able to release a tax-free cash sum from it.

 Click here to see how much cash you could release.

Key’s market monitor shows that there are several different reasons people choose equity release.

Whilst 21 per cent of the equity released with Key in the first half of 2020 was used as a gift to a friend or relative, and 6 per cent was used for a holiday, much more of the money was used to pay off existing debts, with 40 per cent used to clear outstanding mortgages or unsecured debts such as credit cards or loans.

Jane and Chris from London sought help from Key to pay off their £75,000 interest only mortgage and £25,000 credit card debt.

A nurse working in the NHS and a self-employed carpenter, Jane and Chris have lived in their London home for the past 22 years.

Having bought their home for £76,000, they’ve seen it increase in value by £349,000, making it a great investment – however they developed concerns when their interest only mortgage was due to mature over the next three years.

On top of this, the couple found themselves with £25,000 of credit card debt hanging over them.

Jane explained, “We used credit cards for general living expenses – things we needed but didn’t have the money for.”

“As the years went by, it was getting nearer and nearer to the end of our mortgage term. It was a stressful time – not only was I worrying about how we were going to pay off our £75,000 interest only mortgage, but also a significant amount of credit card debt.”

Initially, the couple thought that selling their home was the only option – but they loved their home, their area and couldn’t find anywhere they liked enough to make the move. That was when they looked into equity release.

To find out more order your free expert guide from Key Equity Release, or call them on 08009533775

Once they looked into it, Jane and Chris were visited by one of Key’s equity release advisers.

“We discussed our options and agreed on the things that were important to us. He soon returned with the paperwork and within 5 weeks the whole thing was complete!”

Jane and Chris were able to release cash from their home quicker and easier than expected, whilst remaining in their beloved home. Equity release enabled them to pay off their existing debts hanging over them and to enjoy their retirement in style.

“For us, equity release was the answer. We even had enough money to decorate the front room which needed doing and we are able to enjoy nice meals out!”

They even ended up recommending the service to their friends.

Click here to see how much cash you could release.

How does equity release work?

Key Equity Release offer Lifetime Mortgages only, which is a loan secured against your home.

With this, the loan plus the roll-up interest is usually repaid when the plan ends after you or the last remaining applicant pass away or go into long-term care.

Some plans allow you to guarantee an inheritance and with others it is also possible to make ad hoc repayments of up to 12 per cent of the initial amount you’ve borrowed, subject to the plan criteria, reducing the size of the loan on which interest is charged.

A qualified equity release adviser from Key will be able to explain all of this to you and help you to understand your options.

How can I explore my options in the current circumstances?

For a lot of us, Covid-19 has had an impact on our circumstances when it comes to our finances.

Despite the current circumstances you may still wish to consider your options, and it’s now more important than ever to seek good quality advice, ensuring you consider your current needs alongside your long-term plans –  and with Key, if equity release isn’t right for you, they’ll tell you.

Key offer personalised advice over the phone or by video call or face-to-face appointment, whichever is right for you.  They will help you work out whether equity release is right for you or not.

Click here to find out how Key can help you.