woman enjoying the Benefits of Equity ReleaseBy John Cossons, Equity Release Adviser.

First of all, we are often asked what are the benefits of Equity Release and Lifetime Mortgages? Here are what some of our clients do with the tax-free money they release from their homes.

Repay outstanding mortgage

One of the more common reasons that clients take a lifetime mortgage is to repay an outstanding mortgage on their property. This is often because it is an interest-only mortgage that is due for repayment. The only other way to raise the capital required would be to sell the property and buy something cheaper. This would mean selling the family home, that you may have lived in for years and has all those memories, and downsizing or moving to a cheaper area of the country.

Another reason for this could be that you want to take things a little easier and retire however the mortgage payments would not be affordable and by switching your mortgage to an equity release lifetime mortgage you could reduce or completely remove these payments allowing you to retire.

Downsizing, Upsizing or moving Sideways

I have had cases where the clients wanted to move to a new property however the new property would be more expensive than their current property, not to mention the costs associated with moving such as stamp duty, estate agent and solicitors’ fees.

So, an example of this was a recent case where the client wanted to move closer to her daughter and to an area where getting about didn’t mean relying on a car. The problem was that similar property in this area is around 20 per cent more than where she lived. She had a bungalow with a garden and did not want to downsize to a flat, so the move seemed impossible. However, by using a lifetime mortgage we were able to bridge the gap allowing her to complete the move and as there is no repayment required it has not affected her monthly budget.

Helping Family and Friends

The loan could be used to help a family member. Maybe to gift a deposit to a child or grandchild to help them buy their first house, or to pay for education such as school or university fees. However, there are other ways that you may want to help, and I had a case recently where the loan was used as a gift to the client’s daughter to pay for an extension to their current home. In this instance, the daughter was unable to raise the funds elsewhere and has chosen to pay the interest on the loan so that the amount owed does not increase over time so protecting her own inheritance.

Improve your Lifestyle

Many clients have used the loan to pay for a one-off purchase such as a new car, or to complete property repairs or renovations, maybe a new kitchen or bathroom. Others have used the money to pay for events such as a family wedding or a holiday of a lifetime or to generally improve their standard of living.

Why not check out the video on our YouTube channel.YouTube logo for Benefits of Equity Release

How Equity Release Northampton can help you see the benefits of Equity Release.

Equity Release and Lifetime Mortgage plans are not for everyone. However, the benefits of Equity Release are many. You need to be a homeowner and over the age of fifty-five. The plans should normally be seen as long term lending. We would always recommend that your family are involved.

We can supply you with a free personal illustration. Just click on the”EquityReleaseCalculator” logo.Benefits of Equity Release mortgage clculator

To find out more, why not arrange a meeting with one of our financial advisers. We do not charge for our advice. Only if you choose to proceed and your case completes would a fee of £895.00 be payable. You have the option to instruct your solicitor to pay this fee to us from the Equity Release advance.

Furthermore, meetings can be arranged at a location and time that is convenient for you. This may be at your home or our office in Kettering, Northamptonshire. In addition, our advisers live and make use of  meeting rooms in: –

  • Northampton
  • Wellingborough
  • Thrapston
  • Towcester
  • Raunds

Peace of mind

Above all, as a reflection of our financial standing, we are registered with or are members of: –

The Equity Release Council

Financial Conduct Authority (FCA)

Personal Finance Society

These products are lifetime mortgages or home reversion plans. Equity released from your home will be secured against it.