When discussing finances with friends and family, it always becomes apparent to us that Equity Release also known as Later Life Lending still has a poor reputation. These thoughts are exacerbated when the press and TV highlight poor customer experiences that are a legacy of arrangements made many years ago, but the consequences are still being felt today. You may have an Equity Release mortgage yourself and have had a negative experience. If you are, please read on.
The industry has cleaned itself up and looked to tackle all the negative aspects related to it. If you have one of these plans, or you took out a plan prior to the low interest rates we are currently experiencing, it could well be worth having it reviewed. Rates were higher a few years ago and subject to any early repayment charges that might apply, it could be worth moving to a lower fixed interest rate.
Everyone’s personal circumstances are different and later life lending is not suitable for everyone but for many, it can transform their life or their loved ones. The past decade has seen a flurry of product launches and innovation meaning the options available for the 55’s and over has expanded hugely.
There are a variety of reasons for borrowing in later life. It could be to pay for home and/or garden improvements to make your retirement more comfortable. To pay off debts helping you keep more of your monthly disposable income. To help family members financially, such as getting on the property ladder themselves. It could even be to buy a new car or plan some holidays. It can even be used as part of your inheritance tax planning. The reasons for this type of lending is endless and can improve your financial circumstances. On all these options though, it is important to seek financial advice from a qualified adviser.
Please note – receiving a later life lending product may affect your ability to claim any state benefits that are means tested. Legal advice should be taken on any later life lending products.
With so many lenders and products now in the market, coupled with low interest rates, later life lending products are worth considering as part of your Financial Planning, especially if you want to enjoy your retirement. Later life lending is regulated by the FCA (Financial Conduct Authority).
Here at Blake and Day, we are registered for all types of mortgages and additional borrowing. Please contact Mark Reynolds with any queries you might have as he will be more than happy to help you or visit any of our websites for information.
www.bdequityrelease.co.uk
www.bdmortgageservices.co.uk
www.bdfinancial.co.uk
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