A Visionary Approach to Retirement: Guiding Individuals Towards a Rewarding and Stress-Free Retirement Experience.
I have been in Financial Advice for over 20 years now, and worked in a range of roles including Mortgages, Financial Advice and managing advice teams. I have been specialising in Equity Release for around 10 years now, and I love helping clients in differing situations, with their plans for family and retirement. Those plans can involve helping family, paying off mortgages and debts, improving your home, paying for private medical treatment, or simply accessing funds to enjoy retirement. When I’m not in work, I enjoy spending time with family, walking or playing tennis!
Brian McDonnell
Equity Release Adviser
Equity Release is a financial product, that allows homeowners, typically those who are retired or nearing retirement age, to unlock the value tied up in their property, and convert it into a cash sum, or regular income, without the need to sell the property or move out. It is primarily available to older individuals, who own their homes outright, or have significant equity in their property.
This is the most common form of equity release. It involves taking out a loan secured against the value of your home while still retaining ownership. The loan, plus any interest accrued, is repaid when the property is sold, typically after the homeowner’s death, or when they move into long-term care. Homeowners can choose to receive the loan amount as a lump sum, a series of smaller amounts, or as a combination of both.
With this plan, you sell part or all of your property, to a home reversion provider, while retaining the right to live in the property as a tenant without paying rent. The provider, in turn, receives a share of the property’s value when it is eventually sold.
An interest Servicing Mortgage is a type of lifetime mortgage where you repay some or all of the interest on your loan each month. Where interest is paid in full each month, the amount outstanding on the loan will stay the same until it’s repaid. The full loan is usually repaid when you sell your home, move into long-term care, or pass away.
If you choose to stop making repayments your plan will revert to a roll up lifetime mortgage, which could have a higher interest rate, and the interest will start to accrue”
People use equity release for various reasons, primarily to access the value tied up in their property without having to sell it. Some common reasons why individuals consider equity release include:
Many retirees find that their pension and savings might not be sufficient to maintain their desired lifestyle during retirement. Equity release allows them to convert the equity in their property into cash, providing an additional income stream.
Homeowners may use equity release to fund essential repairs or improvements to their property. This can be particularly beneficial for those who wish to make their homes more comfortable and accessible for their later years.
Some people use equity release to pay off existing debts, such as credit cards, loans or mortgages. Consolidating debts can free up funds for other purposes and help maintain their desired lifestyle.
Homeowners may choose to release equity, to provide financial assistance to their children or grandchildren, such as helping with university fees, supporting them in buying their own homes, or other financial gifts.
Equity release can be used to cover medical expenses, or the costs of long-term care, allowing individuals to remain in their homes or access higher quality care facilities.
Some individuals use equity release to fund their dream vacations, experiences, or hobbies they have always wanted to pursue.
Those with interest-only mortgages might use equity release to repay the outstanding loan when it becomes due.
Some people have multiple financial goals, and equity release can be a way to achieve several of them simultaneously.
However, while equity release can offer financial flexibility, it’s essential to get good financial advice to understand the potential risks, costs, and impact on future finances and inheritance.
Equity release may involve a home reversion or a lifetime mortgage, which is secured against your property and will reduce the value of your estate and impact funding long-term care. To understand the features and risks, ask for a personalised illustration.
Equity release requires paying off any existing mortgage. Any money released, plus accrued interest would be repaid upon death, or moving into long-term care.
If you would like to find out more about how our equity release solutions might be able to make your dreams come true, contact us today for a *free, no obligation initial consultation.
*Initial advice is provided for free and without obligation. Only if your case completes would our advice fee of £1,695 be payable. Other lender and solicitor fees may apply.
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Retirement Planning NI is a trading name of Equity Release Associates Limited, which is authorised and regulated by the Financial Conduct Authority. FCA registered number 932793. Company registered in England and Wales number 12258392. VAT Registered Number 365 5888 43. Registered address, 2200 Century Way, Thorpe Park, Leeds, LS15 8ZB.
