Equity Release

You can’t eat bricks, so why not release some money that is tied up in your main asset?

Equity release refers to a range of products that lets you access the equity, (cash) tied up in your home. If you are over the age of 55, you can take the money you release as a lump sum or, in several smaller amounts or as a combination of both. You can spend it on whatever you want. You don’t have to pay back any capital or interest if you don’t want to during your lifetime.

Do you have a main residence with lots of equity, (cash) tied up in it?

Are you over the age of 55 and own a main residence with no or very little borrowing against it but can’t get at the equity (cash) tied up in it?

Do you have a need for additional funds (income) to assist you in retirement and your life ahead?

Are you currently in retirement with no mortgage on your home but don’t have very much in the way of funds for luxury items such as holidays, now that you have plenty of time to see the world but don’t have the cash to pay for it?

Could you do with replacing the family car now that it is out of warranty and the repair bills are starting to flood in, but you don’t have enough in savings to buy a new one or even qualify for a car loan as your retirement income is too low?

Do any family members, i.e. your children or grandchildren have a need for cash to buy a property to at last get on the property ladder, either for a deposit or to purchase outright. Would you like to help them ?

Do you want to help your children pay for your grandchildren’s school fees or help them financially through university?

Are you coming ever closer to the end of your mortgage term and are finding it difficult to obtain a re-mortgage due to your age or income. Is the lender insisting on capital and interest on your new mortgage which would make it impossible to service?

Is your current lender suggesting you need to sell your property in order to repay the current mortgage that is coming to the end of it’s term?

Would that mean that you would need to move to an area where property was cheaper and away from your family and friends?

How about replacing it with a mortgage that doesn’t rely on how much income you earn, has no maximum age limit and you can have it for the rest of your lifetime.  You don’t have to pay any capital or interest back during your lifetime if you don’t want to and can remain in your home.

How about a fixed interest rate of as low as 2.28%, fixed for the rest of your lifetime? This might be even lower than your current interest rate. Rate correct as at 20/8/2020.

You might like to buy a property to rent out which would generate an income in retirement but you don’t have available funds for the deposit?

The older you are above the age of 55, the larger the percentage you can obtain as a mortgage of the value of your main residence. Remember, no income required!!

As the saying goes, “You can’t eat bricks!”

Retirement Holiday of a Lifetime

Replace the Car with a New One

Help with University Fees

Some people will suggest you downsize from the house you love, move away from your family and close friends so that you can find a cheap enough house to live in and allow you to free up some cash to pay for these more luxury requirements. Why would you want to go through this process and incur the costs? i.e. Estate Agents Costs for selling and buying, Stamp Duty, decoration of the new property to suit your taste, Removal Costs, costs in travelling to see your family and friends back where you used to live.

There may be an alternative solution, which would allow you to remain in your own home that you love, close to family and friends, but still be able to release enough of the equity tied up in your home to allow you to achieve your objectives in your life ahead.

If you can identify with any of the situations noted above, or you would like advice on how you could release funds tied up in your home, then please get in touch and I will arrange for a qualified mortgage adviser to meet with you to discuss the options available to you.

Keep in mind that you don’t have to have a minimum income amount or even any income at all. You also don’t require a pristine credit history or any credit history at all to qualify for this type of finance. 

The older you are the better, as the percentage you can obtain against the value of your house is higher the older you are. 

The funds you receive are worked out as a percentage of the value of the property less any existing mortgage you have secured against it.

You may also be looking ahead to the future and hoping to leave your children or grandchildren some inheritance to help them in their lives ahead, so why not consider giving them some of their inheritance now, when they may require financial assistance the most and you will still be alive to see them getting the benefit of it ! 

Interest rates at present are at an all-time low and the rate you obtain is fixed for the rest of your lifetime.

Rates as low as 2.28% fixed for the rest of your life with nothing to pay back during this period, but if you did wish to service the interest, this may be an option. Rate correct and was available on 20/8/2020.

At present, you couldn’t obtain a normal main residence mortgage for 25 years on a fixed interest rate of 2.28%, where you don’t have to pay back any capital or interest during the period and don’t have to provide proof of income to qualify for the mortgage amount.

Please don’t hesitate to call me if you would like to find out more and I will arrange for a qualified mortgage adviser to meet with you and assist you in achieving your objective.

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