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Is Equity Release Good or Bad The Complete Guide

You must have heard both good and bad things about Equity Release.And sometime you would have been very interested in a professional opinion on the subject. However all the pros and cons of equity release are curated in this Presentation created by Roebuck Lifetime. Check this one out.

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Is Equity Release Good or Bad The Complete Guide

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  1. EPILOGUE Due to bad reputation in the 1980’s and early 1990’s when unethical lenders arranged expensive deals which lead people owing more than the value of their home, lifetime mortgages quite rightly got a bad name. But because of our new strictly regulated Financial Conduct Authority age, things have changed extremely meaning lifetime mortgages are very safe and in fact increasingly being seen for some as a valuable tool for making retirement more comfortable and relaxing.

  2. FCA STANDARDS • There must be fixed interest rates or if variable, there must be an upper limit or cap that is fixed for the lifetime of the loan. • You need to stay in the property for life or until you move into care, just so long as you abide by the terms and conditions of your lifetime loan. • You have the right to move to another property as long as your provider is happy that the new property offers continued security on your equity loan. • The lifetime mortgage must come with the all important ‘No negative equity’

  3. PROS • You receive a tax free lump sum money to spend as you wish. • You can live in your home for the rest of your life. • You (may) continue to have full ownership of your home. • You benefit from any increase in the value of your property. • You will never owe more than the value of the property.

  4. CONS • Equity release interest rates tend to be higher. • The money owed can increase quickly as you pay interest on the interest accrued. • Early repayment charges may apply if you repay early. • Your entitlement to state benefits may be affected. • It will reduce the value of your estate, affecting any inheritance you wish to leave for family.

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