Find out about equity release drawbacks and make an informed choice…
Equity release could be a good option for those homeowners who need to free up some cash in order to live more comfortably into their old age.
Many homeowners have substantial money tied up in their homes and could benefit from equity release, but there are certain equity release drawbacks and it is important that serious consideration is given to alternative courses of action.
But, if equity release turns out to be the most suitable option for you, then you could benefit from the capital available to you. There are several things to be aware of if you are considering equity release; drawbacks include:
- You must be 55 or over to qualify for equity release
- A lifetime mortgage is effected and all the interest due will be rolled up and added to the final amount payable when the house is finally sold
- The value of the inheritance you leave is likely to be reduced
- You may have to pay a penalty if you find you are able to redeem the mortgage before your death
Home reversion schemes, where part of your home is sold to a home reversion company, cannot be cancelled
To find out more about both equity release drawbacks and benefits, simply fill out the form and an experienced advisor will be in touch to talk you through the options.