Perceptions about Equity Release are changing. This is evidenced by significant market growth and demand in recent years. Despite this, myths still need dispelling around this type of lending. Here, we go through a few common misconceptions – and explain the reality!
Myths busted
Myth
Equity cannot be released if there is an outstanding mortgage.
Busted!
Yes, you can – as long as the existing mortgage can be repaid within the amount released.
Myth
I will leave a debt to my family and loved ones.
Busted!
Providing all conditions are met, no debt will be left to your estate. You will never owe more than the value of your home once sold upon death or moving into long-term care, as all plans offer a ‘No Negative Equity’ Guarantee.
Myth
I won’t be able to leave any inheritance to my family from the sale of the property.
Busted!
Once the loan has been repaid, any money left over can go to your beneficiaries. Also, some plans allow you to ring-fence a portion of the equity for your loved ones.
Myth
We will owe more than the value of our home.
Busted!
All plans I recommend offer a ‘No Negative Equity’ Guarantee,, meaning you will never owe more than your home is worth once sold.
Myth
It is unsafe and unregulated.
Busted!
All plans I recommend are regulated by the FCA and supported by the Equity Release Council, which specifically provides consumer lending protection.
If you are considering Equity Release and want to chat, call us on 01277 633123.