Points To Consider

equity release alternatives

 

Equity Release Plans are just one retirement solution; the alternatives must be considered.

To release equity in your home involves borrowing money secured against your main
residence. This is a big decision & we advise you should discuss with your children first.
Equity Release schemes are just one of the options available for homeowners, so before
deciding on equity release, we recommend that you always consider the alternatives.

 

Equity Release Alternatives

should always be discussed to understand the risks & rewards. Compare Equity Release use independent
equity release advisers whose experience can help explain both the advantages & disadvantages of lifetime
mortgages & home reversion plans. The following are some options to consider with equity release schemes:-

 

Utilise Existing Savings

or investments before releasing equity. Are these not sufficient to give you the lump sum or extra income you
need? If so consider using these first, therefore postponing uptake of equity release to a later date. However,
always keep an emergency fund for life’s essentials & feel secure with enough funds behind you in the bank.

 

Downsize Home

and moving into a lower value property may be an alternative to equity release, as this could raise the extra
cash required. Bear in mind, this can be a big upheaval if this was formerly the family home. Consideration
should be given to the location, nearby amenities and the expenses involved in moving to a new property.

 

Entitlement to State Benefits

maybe available, dependent on your income & savings. Check with your local authority first, to see whether
any means tested benefits such as pension credit or council tax benefit can be claimed. Mean tested
benefits could increase your income or help with home improvements. Be aware, taking UK equity release
can affect means tested benefits, so ask a Compare Equity Release independent adviser to check for you.

 

Ask Family for Financial Assistance

as your children maybe in a better financial position to help. It may seem undignified having to ask, but
a family loan could solve cashflow problems. Additional solutions are an interest only lifetime mortgage
whereby the children make the monthly payments for you, thus protecting their inheritance longer term.

 

Arrange a Repayment or Interest Only Mortgage

should you have surplus retirement income. If you can afford monthly payments then a mortgage, loan or
credit card maybe suitable as it will protect your inheritance. Repayment or interest only lifetime mortgages
are still available in retirement. However, always consider the implications of missed payments or arrears
or repossession. A mortgage or loan will prevent any roll-up of interest, unlike equity release schemes.

 

Create a Tenancy to Provide Extra Income

if you are prepared to share your own property. Some people may consider rent a room, or have students
residing with them to provide the required extra income during retirement. However, make sure you feel
comfortable with someone else living in your house and a shorthold tenancy agreement is drawn up.

 

 

Find out more with the independent equity release experts...

Lifetime mortgages & home reversion plans should be considered a last resort once all other options
have been explored. However, if none of the above alternatives appeal, Compare Equity Release
help find you the best equity release deals.

Our advisers will offer a free no obligation appointment in the comfort of your own home, or if more
convenient, with a telephone consultant. They will explore your equity release options and prepare a
financial planning report covering your recommendations.

 

If you wish to book an appointment or speak to a Compare Equity Release specialist, please complete
this online contact form or call FREEPHONE 0800 678 5169 today.

 


The following financial links provide further information and figures in relation to home equity loans:-


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These are lifetime mortgage & home reversion plans. To understand the risk & features of these plans, request a personalised Key Facts Illustration.

CompareEquityRelease.com helps you to compare and arrange equity release schemes with the following equity release companies:

Aviva | Bridgewater | Hodge Lifetime | Just Retirement | LV= | more2life | One Family | Retirement Advantage | Pure Retirement