- Friday, 19 July 2013
Nearly 40% of borrowers over the age of 60 have interest-only mortgages which are due to mature within the next four years, and over half of those borrowers lack investment plans to cover the capital repayment needed to clear the debt when it matures, it has recently been revealed in consumer studies.
So what are your options if you are facing a shortfall when your mortgage matures? The first port of call should be your mortgage lender. For smaller repayments, lenders may be willing to extend the term of the mortgage and perhaps convert it from interest-only to repayment or part repayment.
- Thursday, 07 February 2013
Not all equity release schemes are the same. And an equity release scheme may – or may not – be the best option for you.
Don’t take anyone else’s word for it; this is something you have to decide for yourself based on the best independent information you can glean.
So by all means seek out that advice – but ultimately, the decision is yours and yours alone to take.
- Wednesday, 21 November 2012
The basic logic around equity release schemes is unquestionably sound. You’re retired and find yourself in the position of being capital rich, income poor. So you decide that realising some equity from what is probably your main source of capital, your house, is a sensible thing to do to help you have a lot more liquidity for your retired years - and you don’t have dependents you’re determined to leave all you can to.
- Tuesday, 04 September 2012
More and more people are finding that their pension provision has not kept pace with their plans for retirement, and that their biggest asset at this stage in life is the property that they live in. Many people are, therefore, asset rich even if they are cash poor – as such it’s not surprising that many people turn to equity release in their retirement years.
- Friday, 06 July 2012
Are you one of the many thousands and thousands of borrowers who were encouraged by their bank or mortgage lender in the early 80’s right through to the end of the 90’s to take out an interest only mortgage?
Well, now that these mortgages are nearing maturity those very same banks and mortgage lenders want their money back… and because of the financial problems that the economy has seen over recent years not many of them not want or are willing to help.
- Thursday, 31 May 2012
Two-thirds (73%) of people would consider using housing equity as part of their later life finances, reveals The Equity Release Council (The Council). Indeed by 2017, more than a quarter of a million (257,168) retirees will consider downsizing and 59,347 will look into equity release.
Research undertaken among almost 2,000 UK consumers of all age groups highlights the fact that while some of today’s pensioners might be able to rely on income from pensions, investments and benefits, going forward more and more retirees realise the critical role their property will play in retirement.
- Tuesday, 29 May 2012
After 20-years of campaigning on behalf of equity release providers, SHIP will relaunch as The Equity Release Council (The Council) on Monday, 28 May 2012 and broaden its membership to include advisers, lawyers, surveyors and other interested parties.
At a time when the nation is facing a crisis of underinvestment in pensions, leaving millions facing a bleak retirement, new standards of protection are being put in place to ensure that equity release can safely help to fill the gap in retirement incomes.
- Monday, 28 May 2012
Equity release is a way of raising money against the value of your home. It is vital to take independent financial advice before signing up to a scheme, to make sure you consider all the possibilities and implications.
You may have started to think about how you will manage financially in the future. If you own your home and have little or no mortgage, you may be considering equity release as a way to boost your finances. You borrow money against the value of your home, but pay nothing back until your home is sold – either after your death or if you go into a care home.
- Tuesday, 03 April 2012
One in three say tax breaks for equity release income would boost uptake, KRS research shows. Nearly half of all over-50s would back Government support for the use of equity release plans to boost retirement income, new research from independent adviser Key Retirement Solutions shows.
Its nationwide study shows 45% of over-50s believe the Government should support the use of equity release in funding retirement income with more than one in three saying tax breaks would encourage them to use equity release.