How to get the right equity release plan for you
21 April 2021
Great equity release options for homeowners over 55
In February, Moneyfacts reported that there were the highest number of equity release products in the marketplace since they started recording the figures. The company also underlined that interest rates were at a record low, so if you’re a homeowner over 55 considering releasing equity, this is great news for you as it means you’ll have a promising range of quality products to choose from.
However, with all this choice, comes a greater margin for confusion and trying to whittle down 488 different equity release plans down to one can be a time consuming and confusing task. This begs the question: how can you make sure that you get the right equity release plan for you and your family?
Why we don’t recommend price comparison websites
Trying to find the right equity release plan for you is a complex process, it will need to take into consideration your personal circumstances and other factors to ensure that you’re going to get a solution that works for you. Although price comparison sites can offer a quick solution, they really don’t take into account enough variables to truly know what’s going to work for you as an individual.
When you think about it logically, would you really want a computer to inform you on a big financial decision? Probably not. Instead, you’re going to want to work with a person who can understand your unique circumstances, wants and needs and be able to devise a specific plan just for you. That’s why we never recommend equity release comparison sites – if you’re really after the right deal, speak to an adviser directly.
Is equity release right for you?
One of the main areas that one of our advisers can help you in is helping you to understand whether equity release is the right option for you. Equity release can help you achieve your goals, but it isn’t going to be right in every single case. Unlike many of our competitors, we’ll never recommend you take out a product if it we don’t feel that you’re actually going to benefit from it, in fact, we’ll happily point you in a different direction if we think you’re better placed to use a different method to access cash. For us, the customer always comes first, and we’ll never sacrifice our values for the sake of profit.
However, for many people, equity release is a viable option to help them achieve their goals, be that renovating their home, moving house, paying for home care, helping friends and family or going on a bucket-list holiday. If our advisers feel like you could benefit from releasing some equity from your property, then they’ll work with you to devise a plan that truly works for you.
What to consider when releasing equity
Our advisers will be able to take into a range of different variables when they’re devising your specific equity release plan, but some of the common things we look at are:
- · What property you own: The type of property you own is a very important factor for lenders when they’re considering whether to lend to you. For example, some lenders won’t consider properties when they’re listed or have very large gardens, this doesn’t mean that you’re not going to be able to find the right product for you, it just means you’ll need a specialist on hand who understands the requirements from different lenders.
- · Why you’re releasing equity: Our advisers also consider why it is that you’re releasing equity in the first place. For example, some plans enable you to pay off the loan early without being penalised, if this is something you’re likely to be doing then you’ll want this option to be available to you.
- · Whether you’re going to pay off your interest: Some plans allow you to pay off the interest on your loan as you go, reducing the amount that will have to be repaid when your house is sold. It’s also important to consider whether you’re going to be able to keep up with these repayments, again, our advisers can work with you to help you understand what’s realistic for you.
- · Flexible terms: Some plans are a lot more flexible than others, if you’re uncertain about what the future is going to hold this type of plan could be great for you, for example some allow you to switch from repaying interest to not.
Specialist equity release advisers to get the right plan for you
Our advisers will be able to consider all these factors to get a shortlist of different options available to you, from here, they’ll also be able to signpost the most competitive ones, taking into consideration the terms of the agreement and the interest rates. Again, we never allow our customers to take out a product unless they’re 100% satisfied that they’re doing the right thing, that’s why we encourage you to bring along family members to your discussions with us, to make sure that everyone’s on board with the idea.
Our founder and Managing Director, Jan Johnson, commented: ‘It’s a great time to be an equity release customer, low interest rates mean that you’ll be paying back less money on top of your loan in comparison to previous periods and there’s a great range of products on the market. With this said, making sense of it all can be tricky if you’re not familiar with the market. If you’re considering releasing equity, one of our advisers would love to understand your personal circumstances to be able to find the right equity release plan for you.’
If you want help finding the right equity release product for you, then please get in touch.