Equity Release

Thanks, it was a silly clutching at straws idea.

Please do remember that taking equity could cause you to lose some benefits. Personally I`m in a catch 22 place, as it would mean I have to pay for care which is now almost fully paid by the council.

My retirement isn't what I expected, due to disability.

I hope your plans come to good fruition.

Equity release has changed a lot over the past few years and is usually referred to as a lifetime mortgage now. You borrow about a quarter of the value of your house and can choose to repay it or not, it's your choice. If you choose to make no repayments then obviously the amount borrowed accrues interest at around 5% per year and the amount outstanding grows. If you choose to repay it, there are no set monthly payments but you can make around 4 payments each year but no more than 10% of the amount borrowed in total each year. It's quite flexible but how you manage it is up to you. If you decide to do it just make sure it suits your needs and have a family member or friend present to make sure you understand it all fully.

Make sure you understand that the equity release company can take a charge on your home.
My mother was well and truly conned.
She didn’t understand what she was signing.

Please, please get proper financial advice before committing from an independent financial adviser.

Yes, Age Uk good place to start.

A real life human?
Well, i'll be blowed!
Good, hope it's clearer in your mind now (because I can't understand it!)

Thanks for your replies. I was amazed to ring Stepchange......a human answered the phone and it spoke!!

He was able to answer my question.

I think age UK have impartial advice on their website.
Things have moved on from how equity release was in the past.

An example might help. John and Gill are 70 and in good health. They are retired but do not have enough money to really enjoy their retirement. They would like to travel while they are still fit and healthy. They own their house outright. They have no children or close kin they want to leave their home to. They release equity of £200l and can now afford to travel and take up new hobbies too. They will remain living in their home until the last partner dies. Then the house will be sold and the equity firm repaid. Any remaining money is per will or if intestate goes to government coffers.

If you own a home and do not really have anyone who you would like to leave your home to then equity release is a really good option for you as you can release some money now and enjoy your retirement. If you would like to leave your home to your children it is less good. YOu could give children a lump sum now if you wished out of the equity you release. If you do equity release you effectively release the equity built up in your home already, so you can spend the money now but when you die your home is sold and the equity company take their share back plus a fee.