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Now Aviva Accept Voluntary Repayments – Does this Change the Future of Equity Release?

Tuesday, May 27th, 2014

Aviva equity release voluntary partial repaymentsAviva equity release plans have proved the most popular form of lifetime mortgage scheme over the past 15 years.

The reason for their popularity has been down to a combination of brand name, simplicity and the fact that Aviva have regularly provided the lowest equity release interest rates.

 

However, during that time there has been a cloud hanging over their lifestyle flexi mortgage range and that is the issue over the maximum early repayment charge & the lack of a partial repayment facility. It’s always been a case of all, or nothing with regards to paying off Aviva’s equity release schemes – now we have a choice.

 

Aviva – time for change

In the past few weeks Aviva have bravely taken steps to alleviate these issues with some bold amendments to their lifetime mortgage range. In fact the impact these changes could make, will dramatically alter the way equity release schemes will be used & managed in the future. Other equity release companies will undoubtedly take note of these new features & it can only signal the start of further innovation in lifetime mortgage industry.

 

Aviva have introduced three new approaches to equity release: –

  • new voluntary repayment features can be used to actually clear the equity release loan over a set number of years
  • Aviva apply a different approach to enhanced equity release rates by actually reducing the interest rate on offer (see later article)
  • An early repayment charge exemption can be applied on first death for any new joint equity release lifetime mortgage (see later article)

 

Why Aviva needed to up the ante

Monday 28th April heralded the start of swinging changes to the Aviva Lifestyle Mortgage range. All Aviva’s new equity release applications from this date forth would have the ability for partial repayments to be made back to Aviva.

 

However, from our company perspective during 2013, Equity Release Supermarket had seen its share of applications move significantly towards the Hodge Flexible Lifetime mortgage range. This has been due to Hodge Lifetime’s two pronged attack on becoming the most popular & flexible lifetime mortgage product. Their innovative move towards being able to repay upto 10% of the original capital borrowed & the ability to downsize after 5 years & repay the loan with NO penalty has captured a large market share.

 

Aviva has now responded to the popularity of the Hodge Flexible Lifetime Mortgage plan by matching the 10% repayment option & additionally providing more beneficial features!

A new dawn for the equity release market has started.

 

How does the Aviva Voluntary partial repayment option work in practice?

From inception of the new Aviva equity release plan there is the inherent ability to make repayments of an ad-hoc nature back to Aviva. Aviva do have a cap of 10% of the original capital borrowed that can be repaid in any one year. Additionally, the earliest date that the first repayment can be made is 12 months from the commencement date of the plan. So some forward planning needs to be made & this ideally would have been made with the involvement of your equity release adviser at recommendation stage.

 

Consideration needs to be borne in mind that interest will be added to the plan in the meantime for calculation purposes. For example, if a sum of £40,000 equity was initially released at an interest rate of 5.68%, the balance before any repayment could be made would be £42,272.

 

This is where the first decisions on how much to pay back need to be made, and there are three options available:-

  1. If only a fixed budget is available, then a contribution towards the interest accruing could be made. Should this be less than the annual amount of interest charged, then the balance will still increase, albeit at a lower rate than would otherwise have been should nothing have been repaid.
  2. Should a level future balance be the choice moving forward, the sum of £2,272 could be annually sent back to Aviva, thus reverting the balance back to its original starting point of £40,000. This process could theoretically continue infinitum until the plan ends, which would be upon death of the last borrower or them moving into long term care. The balance would always flicker between these two figures, dependent at what point the repayments of £2,272 were made.
  3. If total repayment of the £40,000 is required, then a repayment strategy could be put in situ which would see this whole amount repaid over a set number of years. Dependent upon how much is initially borrowed & assuming maximum repayments of 10%pa can be maintained for the duration, Equity Release Supermarket can calculate at what point the plan can be fully repaid with NO penalty!

 

As an example Equity Release Supermarket have calculated someone borrowing £40,000, on the popular Aviva interest rate of 5.68%pa, & repaying the maximum £4,000pa could repay their Aviva lifetime mortgage shortly after the end of the 16th year.

Could this be classed as the first capital & interest equity release mortgage?

 

Please contact us on 0800 678 5159 for your personalised Aviva repayment calculation or click this link.

 

How do I physically make voluntary repayments back to Aviva?

A reminder to make repayments will begin with the receipt of your first annual Aviva equity release mortgage statement. This will evidence the amount of interest that has been added to your plan. It is at that point that the first repayment can be made back to Aviva. The question is how much to pay & this will be down to an individual’s personal preferences.

 

Aviva have cleverly side stepped the issue of MMR (Mortgage Market Review) here. Whereas companies such as Stonehaven & more2life have had to adapt their interest only lifetime mortgage process to the new MMR regime, Aviva due to their ad-hoc approach to repayments have avoided the MMR obstacle. Regular payments cannot be set up to repay the Aviva equity release schemes. Although Aviva do permit upto 4 payments each year, subject to a minimum amount of £500, the repayment process has to still be managed through their head office.

 

This repayment process would initially involve a phone call to the Aviva offices advising them of the fact a repayment is due to be sent to them. In reply they will provide a verbal form of quote which acts as confirmation. This can be confirmed in writing to you & optionally your adviser aswell so they are aware of your intentions.

 

The next step would be to send the money which can be in the form of a cheque, credit or debit card or a bank transfer for which Aviva will provide their details & reference number to track. They will not accept payments without this process having been accomplished, or contact being made beforehand. In fact they could return the funds should this process was not followed.

 

Important repayment points to note

As previously stated, repayments can only commence after 12 months from inception of the loan. However, Aviva have imposed further 12 month conditions on when repayments can be made following certain events: –

 

  1. Following withdrawal of cash funds from the drawdown facility of the flexible lifetime mortgage
  2. Should any additional borrowing be taken in the future

 

In both situations, no repayments can therefore be made for 12 months following these two events also.

 

Additionally, the same applies in reverse;

Should a customer have made repayments and has an available cash reserve under their drawdown plan, they cannot gain access to the reserve or additional borrowing until 12 months following their last repayment has been made.

Aviva may consider requests for a further release of equity in exceptional circumstances outside of that rule.

 

These rules are effectively to prevent to the to-ing & fro-ing of cash funds within the plan which would undoubtedly have made the Aviva equity release plans unmanageable and unprofitable.

 

Functional planning ideas for managing voluntary repayments & retaining a cash reserve

Although it’s still early days in the life of the new flexible repayment options, some ideas on managing the Aviva voluntary repayments have already sprung to mind.

 

Unlike Hodge Lifetime, Aviva do not impose a £10,000 lower capital threshold by which no further repayments can be made without penalty. In fact Aviva will allow the continued repayment of interest & capital with NO minimum amount down to zero, or even almost zero.

 

This could be beneficial for those who want to see the equity release balance to be reduced to a minimum level (e.g. £100 or less), yet still maintain the option of keeping their drawdown lifetime mortgage cash facility for the future. Bear in mind the small outstanding balance will accrue interest (albeit minimal), yet for many the comfort of retaining a cash reserve may have massive benefits should cash be required still in the future.

 

Summary

Aviva have responded well to the changing needs of the baby boomer generation as equity release moves into the next stage of its development. Retiree’s financial needs are becoming more complex with almost 75% of pensioners owning their own property, even carrying debt into retirement & living much longer than previous.

 

Aviva’s latest changes will therefore appeal to both advisers and consumers alike who are looking for more flexible loan terms on the long road ahead.

 

To request an Aviva Flexible Lifetime mortgage quote with voluntary repayments please click here.

Click the following link for your FREE Aviva capital repayment calculation.

 

To discuss any of the points raised in this article please contact Mark on 0800 783 9652 or email mark@equityreleasesupermarket.co.uk

 

When Equity Release is NOT Right For You!

Sunday, December 30th, 2012

This article looks at why a release of equity from your home may NOT be in your best interests, after all Equity Release Supermarket is an impartial website and we only want what is best for our customers. Whether that is to proceed, delay and consider the alternatives or to dismiss outright, we will always provide you with a decision that is in YOUR best interests.

 

Equity release schemes are becoming a popular solution for homeowners aged over 55 who want to raise cash without having to sell their property. Although the safeties of equity release schemes are now assured by regulation, the decision to take equity from your property may still not be in your best interests.

 

Start of the equity release planning process

While there are different types of equity release schemes such as Lifetime Mortgages, Home Reversion and Interest Only Lifetime Mortgages, essentially they all act as a vehicle to release some of the equity that is built into your property, and you only need to repay it only once the house is eventually sold.

 

This is all well and good, however you should never shoe horn an equity release plan to fit your personal needs. In fact the opposite should be the case. Any equity release plan should be designed to meet your own personal goals & circumstances. If they don’t, then look towards the alternatives.

 

The fact that you are considering releasing equity means you have a need for financial planning and require funds to meet your monetary objectives. There is nothing wrong with that. Throughout our adult lives, circumstances will dictate that some form of finance will be required, whether it’s a mortgage, loan, overdraft or the credit card. As long as the finance selected was the right product for the right reasons, then it should prove the correct decision to make.

 

This premise remains the same even throughout retirement. The needs of the baby boomer generation are now proving more expansive than previous retired generations. With long term health improving & the over 60’s having a more active lifestyle, retirees have a flavour of living a more care free life and fulfilling their ambitions and dreams. However, jumping to the conclusion that an equity release loan is the only answer, may prove to be a mistake.

 

When should equity release be a ‘NO’

For every reason why one should take a release of equity, there are as many reasons also why not to.  Here we look at the reasons and alternatives why you should think twice about taking out an equity release mortgage, be it a home reversion or one of the many lifetime mortgages.

 

1.      Age – equity release schemes are not available until the youngest homeowner is 55 years attained. There are instances whereby one person may 55+ and their partner is younger. Under these circumstances it is still possible to take a lifetime mortgage only, however this should really be only under exceptional circumstances such as poor health or the management of serious debt issues (maybe to avoid bankruptcy or house repossession). The age factor is an important principle behind one of the negative issues surrounding the equity release loan – compounding of the interest. Remember, the younger you are when releasing equity from your property, the more time the capital has to compound on a yearly basis.

 

The consequential effect of a longer term is that the final balance will be larger; resulting in more of the proceeds from the eventual sale of the property needing to be paid back to the lender. Bear in mind this will not be paid back by you, you won’t be around, unless the lifetime mortgage is being repaid due to moving into a residential care home! It will effectively be paid back by your children/beneficiaries.

 

NOTE -the resultant effect of a longer compounding interest charging period is that the final balance being much higher and a correspondingly much lower inheritance for your children/beneficiaries. If this is something that concerns you, request an equity release quote and see what the potential balance could be in the future. Making certain assumptions on future property values and your anticipated life expectancy would provide an estimate of how much equity could be left, if any at all. Should this be prohibitive, then a solution, if right for your circumstances would be to delay you decision for a few years until such a time the roll-up effect hasn’t as greater an effect.

 

2.      Consider possible alternatives – equity release should really be considered a ‘last resort’ once all the alternative forms of finance have been eliminated. The reason for this statement is due to the long term cost of these schemes, whereas some of the alternatives, if affordable could be more reasonable and favourable for your children or beneficiaries. As part of the Equity Release Supermarket advice service all our advisers will consider whether any alternative forms of raising finance would be better for you. These could include the following: –

 

  • Interest only or interest only lifetime mortgage – if you can comfortably afford to make repayments during retirement then look at such schemes. Interest only or interest only lifetime mortgages would be better for your children as there is NO compounding of interest. The balance would remain the same throughout the term as when the mortgage started. Therefore, the final balance will be known in advance and any inheritance can be ascertained using assumptions on future property prices. With the minimum equity release loan available being £10,000, alternative loan types maybe better. Could a personal loan or credit card be used to service the debt? Certainly options to consider that would also clear the debt, rather than it increasing like an equity release loan.

 

 

  • Downsizing – dependent upon the size of your current property and its uses, then moving to a smaller property could be a solution. By downsizing to a lower valued property would raise money that could then fund your financial objectives. If nothing else, it could delay the decision to take equity release for many years. This is an important decision and not to be taken lightly. There are costs involved in moving house – stamp duty, legal fees etc and there will undoubtedly be improvements you wish to make to your new property which will also include additional costs. Moving to a new area will also mean new neighbours, facilities such as shops, doctors etc should always be considered as part of the downsizing process.
  • Check for means tested benefits – Before taking any form of additional finance in retirement, it would be prudent to check whether you have any entitlement to means tested benefits. This could include state benefits such as pension credit, savings credit or even council tax benefit. Therefore, always check with the Pensions Office or your local council to establish whether you could claim further income for the state. This would only relate to lower income issues and should your income fall below the thresholds set by the authorities then you may have some entitlement. Having this extra income may solve or temporarily solve the need for equity release. If you are entitled to means tested benefits it would also be sensible to check whether any home improvement grants are available on your property. This could be even if you are planning home improvements or not. You may be eligible for loft insulation, cavity wall insulation or boiler replacement under some local authorities.
    NOTE – if you still pursue a release of equity and you are drawing state benefits, the equity release lump sum could result in a partial or total reduction in means tested benefits. If you wish to check your eligibility for means tested benefits you can check with you local equity release adviser on 0800 678 5159.
  • Use existing savings/family bequests – if you have savings or investments that are not used for income purposes then you should consider using these funds before taking equity from your property. Bear in mind that taking equity from your property and merely leaving it languishing in a bank account is not best advice. In today’s interest rate world you will not receive a better interest rate on a bank account than the interest being charged on an equity release scheme.  Therefore, use any savings or liquid investments first, but bear in mind that an emergency fund of upto £10,000 is also prudent to have for that rainy day. This decision is always down to the individual as some clients feel more comfortable leaving greater sums on deposit, just in case. There is also no shame in asking family members for financial support, particularly when the decision to take equity release may not be to their approval due to the effect on their inheritance! Should a family member wish to fund your loan then this may be more cost effective for them, but this could boil down to whether they are happy tying up these monies longer term when they may have their own family needs in the near future.

 

Evidently, there are many factors and solutions that can affect the eventual decision as to whether equity release is right for you. For that reason it is imperative to speak to a financial adviser who is trained & qualified in equity release solutions.

 

To speak to your local equity release adviser click here or call Freephone 0800 678 5159 where independent advice is available.

 

Do Enhanced Equity Release Plans Provide the Maximum Lump Sum?

Saturday, June 9th, 2012

Equity release mortgages have evolved over time. Compared to a few years ago, a much wider range of equity release products are available today. Mortgages have also become more flexible in general, making them suitable for a wider variety of customers.

If you’re interested in borrowing more than a conventional equity release will allow, then there is a type of equity release called the ‘enhanced equity release plan’ that may be of interest. Similar in principle to the enhanced annuity market, the ‘impaired’ or more commonly known enhanced lifetime mortgage can now provide an even greater maximum lump sum than even selling 100% of your property under a home reversion plan.

 

Why would you consider an enhanced scheme?

There are many reasons people are looking to release the maximum lump sum. It could be that one is looking to switch to a new equity release plan from an existing one in order to release extra tax free cash. For completely new applicants, it may be the case that the reason they qualify for an enhanced lifetime mortgage in the first place is down to the fact that health is poor & longevity maybe a concern. You may also want to borrow more, but your existing lifetime mortgage company may not grant further borrowing, or top up interest rates from the existing lender could be very high. An enhanced equity release plan is a lifetime mortgage that aims to maximise borrowing, and keep interest rates relatively low.

New enhanced plans from companies such as more2life will now provide the maximum drawdown lifetime mortgage facility. Therefore, should a retiree require only a small initial lump sum, but require as much as possible over the longer term, then products such as the more2life enhanced plan could be the solution. The underlying decision to go for a maximum equity release maybe to enjoy oneself before health deteriorates further. Once it does, holidays, new cars etc may not be on the list of priorities for the future.

 

Enhanced lifetime mortgage criteria

Enhanced equity release schemes are designed for individuals over the age of 55 years. As people live for longer, it is important to tailor equity release schemes to meet changing demands. As such, an enhanced equity release plan is designed for those who have certain lifestyle requirements due to long standing health conditions – from relatively minor conditions such as excessive smoking, early retirement due to ill health to serious illnesses like cancer & heart attack.

 

Lenders take several factors into consideration while working out the size of the loan. Underwriters calculate the amount that the lender can afford to lend, depending on the individual case and the answers to the health & lifestyle questionnaire. By taking into account the health condition or impairment, how this affects the client’s life expectancy, the lender can increase the amount loaned compared to a regular annuity or equity release scheme. An enhanced equity release plan could allow customers to borrow as much as 15% more than a regular home equity release loan. This can be a significant increase for many people who require the additional income or capital to cope with their day to day needs.

 

Who provides enhanced equity release schemes?

The three main providers of this type of equity release mortgages are currently Aviva, More2life and Partnership. If you are looking to maximise borrowing and suffer from health impairment, however minor, you could benefit from an enhanced equity release plan. A wide range of health conditions are considered for this type of equity release, to see if you qualify consult a financial adviser who can work out whether this is a viable option for you.

 

 

Independent equity release experts such as Equity Release Supermarket can study your case in detail and give objective advice. Using the enhanced equity release calculator  on the website will advise how much you can potentially release.

To receive further information or advice on enhanced lifetime mortgage schemes, call Equity Release Supermarket on 0800 678 5159 or email mark@equityreleasesupermarket.co.uk

 

Why Now Might Prove to Be a Good Time to Take Out an Equity Release Plan: Given the Competitiveness of the Market

Monday, March 12th, 2012

Equity release schemes and equity release remortgage deals allow you to extract the equity tied up within the bricks & mortar of your home. The tax free cash is withdrawn usually by a lump sum or in the form of monthly income. This is a type of loan is for property owners over the age of 55 and is one of the best ways for such people & property owners to borrow money. Equity release plans typically do not need to be paid back until the sale of the home, or the borrower has died or gone into long term care.

 

Why have equity release schemes become so popular?

Homeowners opt for equity release plans for many reasons & their uses have extended beyond their original concept. Gone is the original ideology that equity release schemes would pay for pensioners essential living demands. Instead the flexibility & uses of equity release schemes have diversified into areas such as inheritance tax planning, moving home & many more besides.

They may have grandchildren entering university, and education tuition fees to pay; they may want to travel the world to meet distant relatives or loved ones; purchase a new car that maybe more economically friendly & cost saving; they may have a child that is soon to wed & needs a deposit for that first step on the property ladder; or they may want to consolidate their debts such as mortgage, loan & credit cards in order to free up & release some disposable income. These are all wonderful & purposeful reasons to choose an equity release mortgage. At the end of the day you just want to retire and relax  throughout the longest holiday of your life.

 

How to Compare Equity Release Deals

There are various providers and independent specialists and a variety of equity release remortgage deals available on the market. In the tough economic times, there are few property owners that would not benefit from an equity release deal; however many homeowners are unaware that they have a solution to their problems with an equity release loan. It is important for the retirees to understand how these UK equity release plans work and how to shop around and compare all lifetime mortgages & home reversion schemes to find the best deal available on the market.

The most convenient means to compare equity release deals is on the World Wide Web or more commonly termed – the Internet. There are many equity release providers and schemes that operate home equity loans. These include schemes such as roll-up lifetime mortgages that allow you to extract an initial lump sum with the interest being charged, & compounded onto the previous year’s balance. The flexible & now more popular scheme is the drawdown lifetime mortgage that allows you to take a smaller initial lump sum that is agreed upon at commencement of the loan and then further amounts as you wish. There are advantages and disadvantages to each.

When you compare equity release, you should work with a company that offers advice and guidance and one that has the contacts in the industry to present you with the best deals available on the market. Equity Release Supermarket has a comparison table that identifies the best interest rates, cashback deals & free valuations for you. Click here to visit the compare deals table.

 

All Equity Release Supermarket financial advisers are independent & FSA trained and accredited and it is essential that the deal that you opt for meets the FSA standards and SHIP regulations. This will ensure that you have a deal that is safe and fair.

 

Why Now Might Prove to Be a Good Time to Take Out an Equity Release Policy

A combination of the current crop of exclusives has provided a cheaper route to market for many new equity release applications. However, this is not the only reason for the equity release industry being more confident these days.

A recent spate of rate reductions for the 3 major equity release companies has resulted in some of the lowest interest rates for the past 5 years. Aviva’s recent reduction on its Lifetime Flexible drawdown plan has scuppered plans for Just Retirement to be the market leader. In fact Just Retirement has now thrown in the towel in its quest to become the cheapest lifetime drawdown scheme currently available & is now targeting other areas for domination.

 

 

The current exclusive Aviva equity release offered by Equity Release Supermarket is as follows: –

Product              –        Aviva Lifestyle Flexi Plan

Interest rate      –        5.92% fixed for life

Offers                 –        Free Valuation  PLUS £500 cashback on completion

 

If you wish to take advantage of this Aviva deal then request a quote  or contact the Equity Release Supermarket team on 0800 678 5159 where one of our advisers will be happy to assist.

 

What Can Be Learned by Using an Equity Release Calculator or Lifetime Mortgage Calculator?

Sunday, January 8th, 2012

Those researching equity release will find the use of an equity release calculator and lifetime mortgage calculator as really helpful basic starting points in conducting their research. These online tools are excellent for understanding what the potential maximum amounts of equity release that can be withdrawn. They also prove that research is paramount in establishing whether lifetime mortgages, home reversion or equity release schemes are the most suitable option.

 

The best equity release websites will provide multiple calculator options that answer the most common question – What is the maximum release available?
Always try & find an equity release website that offers a calculator for each type of equity release mortgage option. This is vitally important, as the equity release calculators on most sites only provide you with ONE answer. These sites are not painting the whole picture & may lead you to believe that equity release plans may not be able to help your situation. They maybe just trying to capture your contact information & are basically not providing the answers you require.

 

What is the Use of Knowing the Maximum Lump Sum?

The more comprehensive equity release calculators will advise the maximum lump sum. This is an important figure which can be used to understand what the total amount of equity release loan is available, based on the specific information included in the lifetime mortgage calculator. The reason of this importance is down to the fact that you may have a predetermined lump sum in mind & unless an equity release scheme can fulfil this shortfall, then your dreams can’t become reality.

 

Both equity release calculators & lifetime mortgage calculators require a certain amount of information regarding your current situation. More in depth calculators will go that one step further & can even tailor your answer, dependent upon health. The main two elements required for input are the value of the property & the age of the youngest applicant. This equity release calculator can then provide the total equity release maximum lump sum for both a standard & impaired life arrangement.

 

Different Types of Equity Release Calculators

These will be a lifetime mortgage calculator, home reversion calculator & an interest only mortgage calculator. Of these, the lifetime mortgage calculator should provide two answers – good health & poor health (enhanced).

For an enhanced maximum calculation i.e. where there has been a history of ill-health, then further information will be required to determine whether eligibility will exist. The enhanced equity release calculation will offer a higher lump sum than standard. The assumption by the lender is that due to the ill-health, the term of the equity release mortgage will be shortened. Therefore, as the interest roll-up period will less, then the lender can release more & thereby protecting itself from the no-negative equity guarantee.

 

When looking at this equity release maximum lump sum provided by equity release calculators such as the one above, it is important to note that there are a variety of options available to the customer, from that point. Within that maximum, a customer could find an interest only mortgage or one of the many other equity release products that are currently available on the market.

 

Equity release schemes often provide these calculators because they provide such important initial research for customers. People over 55 years of age who have invested in property may find that interest only mortgages and other equity release products are excellent for the release of equity from their homes without having to sell. This keeps the property in the family or inheritance chain, but also allows the ability to recover some of the money invested or grown in value over the years. There are a range of equity release products available, and it is best to discuss needs with an independent financial advisor. However, before doing so, it is useful to do some background research on what options are available and an equity release calculator, or a lifetime mortgage calculator, is a great place to start.

 

To access the Equity Release Supermarket calculator click here or call freephone 0800 678 5159.

 

Equity Release – A Financial Solution To All Your Retirement Worries

Sunday, January 16th, 2011

Equity release refers to a secured mortgage arrangement for retired homeowners in the UK. It allows older people to unlock the equity from their property and use it for any purpose they want. With equity release schemes, the retired homeowners can release the equity they have accumulated in their property for years.

 

Who can apply for equity release?

When it comes to equity release schemes, there are few rules in regards to who can opt for them. The older you are, the more equity can be released from your home. In order to qualify for an equity release loan, there are some important criteria you need to fulfil. You should:

• Be aged 55 – 95 years
• Possess your own home
• Own a property costing £60,000 or more
• Have no or little mortgage
• Have a leasehold or freehold property with a minimum lease period of 75 years

 

The arrangement of equity release is usually set up by a qualified lending institution. The money can be received as lump sum, a monthly instalment or a combination of both. The best part of equity release is the fact that it allows homeowners to live in their property for a lifetime. After the property owner passes away, the property is sold and the lending institution regains its money.

Depending on the seller’s financial position, the buyer can take equity as a monthly payment or a lump sum. Unlike other mortgage loans, the cash unlocked from equity release is completely tax free. This allows the borrowers to spend the money in any way they want.

So, if you are looking to generate additional income post retirement, opt for equity release.

 

 
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