As we get older there becomes the question of how we might be able to pay for life as an elderly person. While there is the state pension and employers’ pensions plus private pension options that are available to us this can only go so far and if there is something unexpected or something that suddenly requires a burst of income. There are still options open if you own your own home. While this is not giving advice the ability to release equity in a home that has no mortgage on it is slowly becoming a choice that many people, especially the elderly generation, are looking to take. What does equity release entail? This article will give you an idea as to what is involved but for advice then try Equity Release Wiltshire based company https://chilvester.co.uk/equity-release/ to get a professional and thorough service for all the options available.
Despite what you might have heard about the scheme of equity release it is not away to steal your house from you. The Financial Conduct Authority regulates any lender or financial institution that offers the service. One of the first things that they insisted on was that any advisor that comes to see you or that you visit yourself will need to be fully qualified in the practice of giving equity release advice. Due to the nature of the advice being given and the long-term effects that it could have on you. The decision is not one that you should enter into lightly.
The basic idea behind equity release is that you borrow an amount on the value of the property. So, for example if your house was worth £300,000 and you wanted to borrow £25k this would be taken out on it. This is but one example, but you must remember that at no point do the bank actually own you house. How then do they get their money back? This happens in two ways. Firstly, you can pay it back slowly and in set amounts or you can leave it. However, and I don’t wish to be morbid about it, when you die or sell the property the amount that you make from the sale will be deducted from the profit. So, one thing that you should remember is this will have an effect on the amount of inheritance that your beneficiaries will get.
