Equity Release- Things to Consider
Equity Release- Things to Consider
With an increasing number of schemes available there is more choice and flexibility than there has been in the past.
Local expert, Sarah Ferrell, is a great advocate of Equity Release, however as she says,“ It is a transaction that will“ last a lifetime” so careful consideration and good advice are needed”
Sarah gives us her top tips when considering Equity Release:
1. Get advice
This is a lifetime financial decision, so finding the right combination of features to suit your circumstances( both now and later in life) is of paramount importance. It is the role of the adviser to make sure you understand all the costs, key points and restrictions that may affect you.
2. Carefully calculate how much you need and when you need it
Any release comes with a cost and it is important not to release more than necessary. I recommend my clients write a“ shopping list” to accurately note how much they require and how soon they need the money. If, for example, a proportion of the funds is needed for a project in 12-18 months’ time, I might recommend an initial release with a future drawdown facility to reduce the effect of interest longer term.
3. Consider alternatives
I have seen Equity release do a huge amount of good, however it is not right for everyone. I encourage my clients to consider other ways of raising the funds, to make sure this is the right route for them.
4. Involve a friend or family member
If you have children / beneficiaries it is very likely that, at some point, your family will need to deal with the lifetime mortgage. If appropriate, I would recommend a conversation with family and would always welcome multi-generational meetings.
5. Consider making payments of interest
If you have the means to pay, even a proportion of the interest during your lifetime I would more often than not recommend this as it protects the equity in your home – not just for those you leave behind but, more importantly, for your own benefit should you need more financial options later in life.
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Call Sarah on 01622 631372 or 07789 007447 or e-mail her at sarah @ ferrellfinancial. co. uk You may find answers to some of your questions at www. ferrellfinancial. co. uk
Ferrell Financial Limited is an Appointed Representative of The Right Mortgage Ltd, which is authorised and regulated by the Financial Conduct Authority. This is a lifetime mortgage. To understand the features and risks, please ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice. There may be a fee for mortgage advice. The precise amount will depend upon your circumstances. Registration number: 678768. Companies House registration number: 11192749 registered in England & Wales. Registered address: The Bluff, Roundwell, Bearsted, Maidstone, Kent, ME14 4EU
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