Although the so called austerity measures announced by the Government are designed to cut public spending and get the economy back on track, the reality is the average homeowner is still facing serious financial difficulties even before the inevitable cuts come into force; especially those in retirement. Banks are still not lending and they are fearful that people will default on their loans. But what is the solution? One ever popular option for those over 55 is equity release.
Using your Money for Anything you Want
The appeal of equity release schemes is that the money released is the homeowner’s own — it is released straight from their property and they can use it however they wish. Whether the property owner prefers to receive a lump sum or draw down sums from a pre-agreed cash reserve, the money can be used for anything.
Credit Hard to Come by
With banks so nervous about the economy, many potential borrowers are finding that access to traditional types of credit is becoming very limited. Lenders are also changing and modifying their terms and making it far more difficult to be approved for credit, leaving many people, especially those approaching retirement age with a lower income, in a very difficult position if they wish to get their hands on some money for things like, say, home improvements, holidays or to buy a new car for example.
Equity release can be an alternative option for funding these things as with some plans there are no credit or affordability checks. Seeking advice from an independent equity release specialist is of course vital to ensure the correct plan is selected, and to make sure equity release is the right course of action.
Equity release may involve a lifetime mortgage or home reversion plan. To understand the features and risks, please ask for a personalised illustration.
Bower is an FCA regulated independent financial advice company that offers specialist advice on equity release throughout the UK. For more information email [email protected] or call 0800 4118668.