Whether you’re considering a lifetime mortgage or a home reversion equity release plan, it’s vital to shop around for a good deal.
You Need to
• Get quotes from a wide range of equity release providers but for your protection, deal only with members of the trade body Ship (Safe Home Income Plans).
• Compare all the terms and conditions, even if it means reading a great deal of very boring, very small print.
• Make sure you’re clear on absolutely everything and that you take all the costs and possible penalties into account.
For more on this read, Questions to ask about equity release plans.
• Discuss the pros and cons of each plan with your heirs to ensure they understand that they could lose their inheritance. (You might find they would rather lend you the money themselves.)
• Get independent legal and financial advice including estimates of how much each plan could cost you over various time scales, and how releasing equity could reduce your eligibility for state benefits.
And Finally
Ask yourself if you are absolutely certain you need the cash, and that you can’t find a less expensive way to access it.
What about downsizing, other types of borrowing or even state benefits?
Before you make a final decision, review all your options one more time just to be sure.
Once you sign on the dotted line, it will be too late to change your mind.
If you’re determined to go ahead, read Finding equity release providers.