Equity Release Drawbacks

Equity Release Drawbacks

Looking to raise tax free cash without moving home?

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Lowest Rate Promise or Key Advice Will Give You £500!

If you’ve already had equity release quotes from providers or advisers, arrange a consultation, give Key Advice the same criteria and they will beat or match their rate or pay you £500. This challenge only applies when you’ve had a consultation with Key, and to Equity Release Council approved plans available at the time of your recommendation from Key.

Equity Release Drawbacks

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
  • 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

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Equity release may affect your entitlement to state benefits and will reduce the value of your estate. It may involve a lifetime mortgage or home reversion plan. All content set out in this website is provided for information only and should not be considered as advice. It is strongly recommended that you seek advice of a qualified, independent financial advisor before making any decisions to take out an equity release product.