Over 55 equity release to clear your debts
Nearly a third of home reversion and lifetime equity release mortgages are to pay off debts, such as overdrafts, credit cards and loans*.
Equity release can be used to clear any type of debt. There is no minimum or maximum level of debt, but National Debtline advises that equity release is more likely to be a suitable option if you can’t afford to clear your debts through your existing regular income.
You can choose to receive your equity release either as a lump sum or in regular payments; we would help you choose the option that suits your personal needs best.
*Source: UK Equity Release MARKET Monitor, Q1 2017
Case study: paying off debts to free up disposable income
64-year-old Gerry was approaching retirement, when his income would dramatically reduce. He had a mortgage of £11,000 (which he was due to repay in 12 months) and other debts totalling £27,000, which he felt he would not be able to service once he retired. He was having sleepless nights worrying about how he was going to repay the debts and he didn’t want to move from his home where he had lived for over 28 years. His home was valued over £500,000 and he was able to release enough to repay his debts, saving him £1,500 a month. He was confident that his pension income would be adequate to cover remaining household bills, so taking away the worry. However, he did qualify for a drawdown facility, which he took advantage of just in case he needed some money to cover unexpected expenses in the future.
We did it!
We used equity release to clear our debts
‘We are both very happy with the decision to equity release to repay debts to free up disposable income. We got very good advice and help from 55Plus Equity Release, and would recommend them to anyone looking into equity release.’Gerard & Carol, successful over 55 equity release applicants, Enfield, London