One of the most common myths I hear is clients who tell me “I don’t want to lose my home”
When it comes to planning for retirement, many homeowners may consider equity release as a potential option to access some extra funds. However, there are often misconceptions surrounding equity release and one of the most common ones is the fear of giving up ownership of your home.
First and foremost, it’s important to understand that equity release does not mean giving up ownership of your home. When you opt for equity release, you are essentially taking out a loan against the value of your property, just like any other style of mortgage. The difference is that with equity release, you can access the money without having to make monthly repayments, unless you want to. The loan, plus any accrued interest, is typically repaid when the homeowner moves into a long-term care facility or passes away, and the property is sold.
One of the major benefits of owning your home for life is the sense of security and stability it provides. With equity release, you can continue to live in your home for as long as you wish, without having to worry about making monthly mortgage payments. This can be especially comforting for retirees who may be on a fixed income and want to remain in their familiar surroundings without having to worry about downsizing or joining a new community.
Additionally, owning your home for life means that when you move into long term care or pass away, you can pass on the property minus any debt owed to your loved ones as an inheritance. This can be a valuable asset to leave behind for your children or grandchildren, providing them with financial security in the future.
Overall, equity release can be a useful financial tool for retirees looking to access some extra cash without giving up ownership of their home. By understanding the true nature of equity release and its benefits, homeowners can make an informed decision about whether it is the right option for their individual needs.
Ready to find out more? Visit our dedicated later life lending page to arrange your free 10 minute discovery call!
Mike Jones
Later Life Lending Specialist
Mike Jones is a later life lending specialist who is responsible for the “Mewstone Later Life Lending” service. Mike has years of experience in retail banking as well as extensive knowledge of the later life lending sector.
Choosing to release money from your home is a big decision and it’s important for you to understand all the options available to you. This means that he will always offer you unbiased advice. It doesn’t matter to us which solution or lender is recommend, as long as it is the right one for you.