PS – If you’re anything like us, you skipped to the end anyway. In recent years, there has been much negativity surrounding the scheme and whether it is a safe option for property owners looking to free up funds in later life, with many homeowners reporting they ended up owing thousands of pounds more than their original borrowings. Having the ability to ‘draw’ on the capital value of your property can allow you to do many things to make your retirement more enjoyable i.e. Is Equity Release right for everyone? Is Equity Release A Good or Bad Idea? because in effect you are selling the house, except that the buyer won't get possession of it until you die, which could be (and hopefully will be ) decades away. Particularly in time of unstable stock markets. Here are some of the reasons why it’s a great plan: #01. Well, before making a final choice about whether or not an Equity Release plan is right for you, it’s important to be aware of all the pros and cons. You Still Get To Keep Your Home. That fear is entirely reasonable because honestly, no one would want to be homeless or to move from being a homeowner to paying rent. It is a decision to make based upon your current and long-term needs. Equity release won’t necessarily be a good idea for everyone, but for some people, it can be an effective way to unlock cash they have tied up in their property. Equity release offers safeguards that traditional mortgages don’t and it’s a good idea to understand what these are while you are thinking about taking out an equity release plan. We did it 3 years ago with the specific purpose of releasing enough of the equity to pay off an existing mortgage which would have lasted until we're 83. Taking out a ‘lifetime mortgage’ on your home might seem like a good idea, but there is a downside Published: 1 Aug 2015 . Equity release is a good idea if - it means you can live on your current income without debts. Always a good starting point is to know what exactly we’re talking about. said: 'If you're over 60 and worried your pension won't be enough to live on, an equity release scheme might seem like a good idea. There is sufficient equity in your property and its likely to remain that way. Is equity release a good idea Mention the words ‘equity release’ and you might automatically assume it’s something to be avoided. If you do want to leave your property, then there may be alternative ways to raise the money you require. If you do want or need some extra money around the place and you don’t want to leave your property intact to your beneficiaries, then equity release is a good idea. Equity Release utilises an asset – your home which for most people is often their biggest asset however is an illiquid one. The answer to this question is not straightforward. As with all financial situations, everything is personal making While we think that the principle of equity release is excellent and will deal with the fact that she still has an outstanding mortgage, we are concerned that she is borrowing money at 6.7%. So Why Is Equity Release A Good Idea? In recent years, there has been much negativity surrounding the scheme and whether it is a safe option for property owners looking to free up funds in later life, with many homeowners reporting they ended up owing thousands of pounds more than their original borrowings. You choose the method of release which best suits your plans eg mortgage style release may not be good if you plan to stay put for the next 40 years. Pros. More lenders could mean more competition and market forces can drive down costs. So here’s the scoop – our intention is to help you by finding the best equity release provider so that you can spend the money on something that you really want to, rather than on a high tax bill. What is equity release and is it a good idea? Equity release schemes are designed to be a lifelong commitment, so, if you change your mind, need to move house or want your equity for something else later, you could find yourself seriously restricted. Mention the words ‘equity release’ and you might automatically assume it’s something to be avoided. Whether or not it’s the right tactic for you will depend on your plans for your cash and your financial situation. An important factor to consider when thinking about whether equity release is a good idea or not is the interest rate at which you can borrow money. In recent years, there has been much negativity surrounding the scheme and whether it is a safe option for property owners looking to free up funds in later life, with many homeowners reporting they ended up owing thousands of pounds more than their original borrowings. Pros and Cons Is equity release a good idea? So is equity release a good idea? Improving health and an increase in life expectancy is putting a strain on people who fund their lifestyle on limited resources. You can take the money you release as a lump sum or, in several smaller amounts or as a combination of both. In recent years, there has been much negativity surrounding the scheme and whether it is a safe option for property owners looking to free up funds in later life, with many homeowners reporting they ended up owing thousands of pounds more than their original borrowings. Malcolm Coles at Which? Mention the words ‘equity release’ and you might automatically assume it’s something to be avoided. One of us had to be 68 before we could release 25% of the equity. ⚠️(Spoiler**) Most send us a personal thank you because we do such an incredible job – you’ve been warned. As Equity Release becomes more mainstream we might expect to see more lenders coming in to the market. Its likely to remain that way scared to take mortgages or engage lenders using homes. 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