One of the common myths surrounding equity release schemes is that you no longer own your home when applied. However, in reality, you will not only remain the legal owner, but you will also generally enjoy the freedoms – and responsibilities – associated with home ownership.
Stories of homeowners waking up to find that they can no longer afford their mortgage due to rising rates are becoming commonplace. Here’s how equity release can be a solution.
Understanding why and how a ‘housing market crash’ has come about — and is predicted to continue — takes more than just studying the data. 55Plus Business Development Director, Adrian Johnson, has five decades of experience as a chartered surveyor and shares his perspective on the present fears around falling property valuations.
Two-year fixed-rate mortgages are currently rising above 6% and are expected to continue even further. This has made mortgage payments unaffordable for many homeowners, especially for first-time buyers. In a lot of cases, this has put increasing demand on parents and grandparents to support their children and family, providing the financial support they need to avoid falling into further debt, or at risk of potentially losing their homes.
Although equity release has soared in popularity in recent times, many people still have misconceptions about how it works. The number of products on the market has more than tripled over the years, and there are a variety of flexible features to sort through, so your options have never been more varied. This increased choice can also make for increased complexity and is one reason why equity release is still an industry in which myths abound.
Financial pressures, such as mounting debt from loans or credit cards, can often cause stress and can affect mental well-being — especially if the debt has arisen from a necessity, such as life-changing surgery. That’s why many people look for ways to consolidate their payments, ease their cash burden and regain control over how much they want to pay and when.
With over 7 million people currently waiting for NHS treatment, many homeowners over 55 can struggle to have their medical needs met, which can impact their quality of life. Find out how one of our clients used equity release to self-fund hip replacement surgery at a time and pace that suited them.