Why do people take equity release?
There are a myriad of reasons for people needing money in retirement, but there is a trend recorded by most lifetime mortgage lenders and the Equity Release Council
Children and Grandchildren
A lot of our children and grandchildren are also finding it very difficult to get onto the housing ladder in today’s climate. 100% mortgages no longer exist, and with house prices still increasing at a higher rate than wage inflation, deposits are becoming huge in comparison to most people’s take home pay. The divorce rates are also leaving many of our children to face starting again after not only an emotionally difficult time, butalso a financially catastrophic time. It is unsurprising that many parents will wish to help their children and grandchildren as much as possible in these times. Sometimes Equity Release is the only way to realistically help. As any equity release plan will eat into their eventual inheritance most children who are in immediate need of financial help find this to be a lifeline.
Lifestyle Choices
Another reason for equity release is to realise ambitions that were not fulfilled during the working life. New cars, classic cars, and even motorbikes have been purchased, though not all ambitions are quite as extravagant. Holiday homes, campervan and caravans are very popular, alongside trips to see distant family in far off countries, or just a dream holiday. Young children have been taken to Disneyland by their grandparents, and world cruises have been taken in order to just sit back and relax for a while.
Paying off an existing mortgage
A lot of people choose to do equity release in order to pay off an existing mortgage. Interest only mortgages always required an investment vehicle to pay them off on the due date. Unfortunately with the endowment miss-selling scandal and the current economic circumstances, a lot of these investments intended to pay off the mortgage have not raised enough money to do this. This has left a significant amount of people without the ability to pay off their interest only mortgages. Most lenders will negotiate to extend repayments, but this does not help a family that are struggling to make the interest payments in their retirement. Government benefits may also help, but those who do not qualify are also left with nowhere else to turn. It is not only interest only mortgages that may cause this sort of problem. Repayment mortgages may also run into retirement and become a burden for some families to pay on a monthly basis. Being unable to re-mortgage due to a much smaller income will force people into looking at downsizing or looking into Equity Release.
Home Improvements
With aging also comes aging property, and the wear and tear of a lifetime can be pretty significant. Fixing roofs, repairing walls and modernising kitchens can be very expensive, and so becomes another major reason for looking into equity release. Some home improvement projects are not based on repairs that are needed. Many a conservatory has been built, or extension placed on the property. Other changes may be related to health. Stair-Lifts are fitted or the home is made wheelchair friendly with widened doorways and ramps. This allows people to remain in the family home when the only other alternative would be sheltered accommodation.
Living Expenses
Another major reason for equity release is to just supplement everyday living expenses. Plans are available that can be drawn down over time, and these have been utilised just to give a little extra income year on year to make the regular bills a little less of a struggle. The Equity Release Information Centre has been in the Equity Release market since 1985, and as such is the longest established equity release intermediary in the United Kingdom. They are offering advice and Consultations on the equity release market and all the plans available in the UK and are one of the few major equity release advisers in the UK with no ties to lenders, and therefore are truly wholly independent. For a free brochure on Equity Release from the Equity Release Information Centre, please call on 0800 077 6885.
Customer Testimonials
” Dear Mr Simmons, I would like to say a special “THANK YOU” to Rebecca Sumner, Joanne Crowther, Allison and Gemma. They have all been exceptionally helpful and extremely considerate of my needs on every occasion I have had to speak to them. It has truly been a pleasure to have dealt with them.
Mrs Sheila B – 03/10/2015
” Dear Mr Simmons, My contact with your firm has been Samantha Walker. From the first contact Samantha has been warm friendly and very efficient. As there has been a new lease involved this has been a long journey with Samantha being really on top of things from the start, always available and never flustered. I feel very fortunate that Samantha was my first contact, you are very fortunate to have her, she is doing a splendid job.
Mrs S L MBE – 21/07/2015
” All your staff are “super”, but i would like to especially mention Becky Sumner. She dealt mainly with me. She is a credit to your firm. Nothing was too much trouble, no query too small for her to deal with. She has been like a good friend to me being on my own have lost my husband at the beginning of the year. Becky has made things as trouble free as she possibly could. Yes I would recommend anyone, be it friend or neighbour, to your firm. Mrs Lunn, Bournemouth
The Equity Release Information Centre has been in the Equity Release market since 1985, and as such is the longest established equity release intermediary in the United Kingdom. They are offering advice and Consultations on the equity release market and all the plans available in the UK and are one of the few major equity release advisers in the UK with no ties to lenders, and therefore are truly wholly independent. For a free brochure on Equity Release from the Equity Release Information Centre, please call on 0800 077 6885.
“This is a lifetime Mortgage or Home Reversion Plan. To understand the features and risks ask for a personalised illustration. Plan availability is subject to lenders criteria and dependent on their terms and conditions. Consider the impact that Equity Release may have on entitlement to means tested benefits. Equity Release will affect the inheritance you leave. Only if you choose to proceed and your case completes would a typical fee of 1.5% of the amount released be payable.” There are a myriad of reasons for people needing money in retirement, but there is a trend recorded by most lifetime mortgage lenders and the Equity Release Council.
Contact us on : 0800 077 6885 or visit us at www.AskERIC.tv
Disclaimer
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