Are you finally ready to take that dream holiday you’ve been thinking up for years? We are here to discuss how releasing equity can help you get there.
A Lifetime Mortgage allows homeowners aged 55 and over to access value. It can provide you with a lump sum or regular income. Here's our step-by-step guide on how to plan the trip of a lifetime:
1. Assess Your Lifetime Mortgage Options
Research different Lifetime Mortgage products available. There are typically two main types: lifetime mortgages and home reversion plans. Understand the pros and cons of each option. From there, determine which works best for your financial goals and circumstances.
2. Consult a Financial Adviser
It's crucial to seek advice from a qualified financial adviser specialising in Lifetime Mortgages. We can help you understand the implications of releasing equity from your home. This includes potential costs and interest rates. Plus, how it may affect your inheritance and entitlement to means-tested benefits.
3. Calculate the Amount Needed
Determine how much equity you need to release to fund your dream trip. Consider all factors. Such as airfare, accommodation, transportation, food, and activities.
4. Budgeting
Create a detailed budget for your trip, accounting for all anticipated expenses. Additional costs include travel insurance, visa fees, souvenirs, and emergency funds. Make sure your budget aligns with the amount of equity you plan to release.
5. Plan Your Itinerary
Research your trip to see if there are any once-in-a-lifetime opportunities. Decide how long you'll stay. Which areas do you want to visit? And what experiences do you want to prioritise during your trip?
6. Book Accommodation and Transportation
Get organised in advance to secure the best deals and availability. Consider staying in a mix of accommodations to enhance your experience. Such as hotels, villas, or guesthouses.
7. Prepare Necessary Documents
Ensure you have all the necessary documents for your trip. Including your passport, travel insurance, and visa (if required). Plus, any medical prescriptions or documents you may need.
8. Enjoy Your Trip!
Remember to review your Lifetime Mortgage plan regularly to ensure it meets your financial needs and goals. Additionally, consider alternative funding options or supplementing your equity release. Such as income or savings. This will provide a comfortable retirement and financial security in the long term.
SPEAK TO AN ADVISER
This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice. A fee may be charged for mortgage advice. The exact amount will depend on your circumstances.