Equity Release In Wales
If you are retired and live in Wales, an equity release may be highly useful if there is significant equity locked away in your property. However, it is important to remember that there is a certain degree of risk involved with any financial product or agreement, and it is therefore important to carefully consider the pros and cons of an equity release before committing to it.
If you are looking for an equity release in Wales, please see the link below for a quote on an equity release policy.
By taking out an equity release on their property, customers can effectively use their home as collateral in exchange for money that can be spent on whatever they wish, from supplementing the policyholder’s pension to funding a one off holiday.
Equity Release – The Pros and Cons
- Retired customers can use the money for whatever purpose they wish (extra income, a holiday, medical care etc)
- Customers will not be expected to move out of their property
- Some plans are also portable, allowing customers to move to a different property if they wish
- Since a share of the property is sold off by the provider, an equity release can drastically affect the inheritance of relatives after the policy holder has passed on
- The payment that is received may not reflect the market value of the property
- Many policies often carry severe penalties and early repayment fees for customers who wish to repay the loan earlier than expected
Types of Policy
There are generally two types of policy that are offered to customers, these are known as lifetime mortgages and home reversion plans. Lifetime mortgages allow customers to take out a secured loan against the value of their property, home reversion plans are slightly different and allow customers to sell a share of their property to a provider in exchange for a loan.
For more guidance on these policies click on the link below, a competitive equity release quote will also be provided.