Saturday, 7 March 2009

EQUITY RELEASE - IS IT FOR YOU? PART 1

Perhaps the main reason anyone opts for equity release is because they are property rich (mortgage paid up and valuable property) but cash poor (little or no savings and/or little or no pension or income).
Equity release allows you to use some of the value locked up in your home, but means you can still continue to live in it.
Sell and rent back schemes are often confused with equity release - they are not the same thing at all and have had some very bad press lately, with some people losing their homes as their landlords go bankrupt or default on the mortgage on the property.
Some people use equity release to pay off a debt, help their children out financially (with perhaps a lump some as a deposit for a house), go on a once in a lifetime holiday, buy a car, have some much needed maintenance carried out on their house, etc., etc. Some unfortunate people who are on very low incomes, may even be desperate enough to take on equity release just to get some money to live.
There are a few things to consider before entering into equity release; why? which type? when? who with? What are the drawbacks?Are there any better options?
Read more in Part 2.

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