Equity Release in Birmingham
If you live in Birmingham, an equity release may be highly beneficial if you are property rich and cash poor. A suitable policy can be used to provide customers with a cash sum, or a source of income that can be used to enhance customer’s pension payments.
These agreements are generally intended to be used by retirees who have paid off their mortgage, as they will allow policy holders to remain in their homes for as long as they wish until after they have passed on.
The money that is received can be spent on a variety of different things, from a one off holiday or expensive item, to covering the cost of household or utility bills.
Please see the link below for an equity release quote if you are in Birmingham or the surrounding area.
These loans essentially allow customers to access the equity they have locked away in their property, however it should be remembered that these agreements may have one or two drawbacks depending on the circumstances.
An equity release is after all, a lifetime commitment that should not be entered into lightly. As such, the following factors should be carefully considered:
- Equity release schemes often come with relatively high ‘early release penalties’ (ERCs) for customers who wish to cancel them
- Entering in to an equity release scheme will typically lower the value of an inheritance if the policy holder has any relatives to leave this to. The cost of repaying the loan will be taken out of their estate after they have passed out
- The money that is received may not reflect the current market value of the property
- Customers will also typically be subject to arrangement fees, as well as other charges to cover the cost of valuing the property.
If you are interested in taking the idea of equity release in Birmingham further, you should click on one of the links on this page to get an equity release quote today.