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Over 55? Have you considered releasing equity?

If you are currently isolated in your home, watching your pension value fall through the floor and worrying about how you'll pay for those luxuries such as holidays & home improvements, perhaps a Lifetime Mortgage could be the answer....

Now, more than ever before, many of us are worried about how we are going to financially survive the months or years ahead.

The rapid spread of COVID-19 coronavirus has become one of the biggest threats to the global economy and financial markets. People have been losing their jobs, businesses are collapsing as they try to deal with drastic cuts in funding.

And yet in amongst this turmoil, us "normal" folk all still have bills to pay, debts to address, mortgages to fund. Yet when most of us are confined to our homes, how can we generate the income we need to survive?

Well, for those homeowners aged over 55, there may be some good news - you could release some of the equity in your house in the form of a Lifetime Mortgage and access a tax-free lump sum giving you the finance you need for now and the years ahead.

How does it work?

The most common for of equity release is a Lifetime mortgage, which is a loan taken out against the value of your property at a fixed rate of interest for the lifetime of the loan. Interest rates are at the lowest they have ever been, with many below 3%. You can choose to access the money as a tax-free lump sum or if you don't want or need a lump-sum, you could opt for regular instalments of the cash released when it suits you. This could be a life saver in these turbulent times when salaries have been cut and outgoings remain high.

How can I pay back the loan if money is already tight?

You don’t need to. The beauty of a Lifetime Mortgage is that you have the option of making monthly payments - or not.

The most common way of arranging a lifetime mortgage is on a "roll-up" basis, where the monthly interest due is rolled up into the balance of the loan, with the balance of the loan repaid from the sale of your property when you either die or go into long term care. This gives you the peace of mind of having access to funds when you need them without having to worry about paying them back, particularly during this period of financial insecurity.

Alternatively, if you would prefer to pay the interest each month that is also an option – the choice is yours. But either way, the funds are available if you want to release the cash from your property.

Access the funds from the comfort of your home.

We are of course conscious of the need to maintain "social distancing", particulalry for the more vulnerable members of our society. With this in mind, we have developed a contactless process, making use of any and all technology available to us. We are happy to work with our clients using whatever they are most comfortable with, so if you prefer a simple telephone call, or are happy with video calls we can accommodate your requirements.

From initial conversation right through to the release of the funds, you can stay in the comfort and safety of your own home and just wait for the money to arrive in your account. You would need a solicitor to give you the required legal advice, but again many are now offering either remote consultations using technology, or where a face to face meeting is required, they are taking all precautions, including gloves - face masks - and even insisting the client uses their own pen to sign the papers. Nothing is being left to chance!

If you think that Equity Release could help you during this period of unprecedented instability, or you'd finally just like to get on with the home improvements you've been planning for years, please phone Stephen Dransfield on 0330 043 2906, or visit the CONTACT page from the menu above to arrange a free consultation without commitment or obligation of any kind.

The gardening's been done, the DIY jobs are up to date - make use of the lockdown and sort out your financial future!

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