Equity release often involves people being able to access cash tied up in their home if they are over the age of 55. This can either be taken as a lump sum, or in smaller amounts throughout a person’s later years. Equity release can often be beneficial for those looking to get their hands on extra funds either to meet certain goals, or to help others.
“It is definitely worthwhile looking at equity release as an option as it could work well for you and help you with certain goals.”
But as valuable as equity release could end up being for many people, there are important issues to take into account.
These key points can help Britons to approach an equity release arrangement and be at ease that things will go smoothly.
Ms Brain shed more light on these points, highlighting them as a “checklist” for people to consider.
She said: “The thing with equity release is to always make sure that you talk to your family about it.
“This is because it does affect what your estate is ultimately worth later down the line, which will be of importance to your family.
“You also have to take into account the interest which accumulates on that loan. It is a debt and it is going to increase.
“In that sense, then, this is the strongest thing which needs to be communicated as interest is being added all the time onto the amount that a person borrows.”
However, Ms Brain also revealed that the rates for equity release have dropped dramatically within the last 12 months.
As such, Britons may find themselves able to get an equity release product for less than three percent.
This is a substantial change to how equity release has functioned in the past, and as a result, people may wish to take advantage of the alteration.
But there is a final point of consideration for those looking into equity release which Ms Brain relayed.
She concluded: “Finally, when you are undertaking equity release you should always take on independent financial advice.
“Legal advice is also key to any equity release arrangement, because of the implications equity release has and how it must be paid back.”