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Can a lifetime mortgage help your growing family?

Our first grandchild is joining the family in a few months. Can I use equity release to help them prepare for the future?

 

Congratulations on the upcoming addition to your family! Equity release can be a way to access value tied up in your home, helping you provide financial support for your grandchild.

 

Wouldn’t it be nice to have the funds to help with your own retirement needs and support your loved ones financially?

 

Traditionally, we leave the nest egg we’ve carefully built up, passing along property after we die. However, with more people living longer, it’s becoming increasingly common to help your loved ones. Sooner rather than later.

 

For example, say your children are having to look for property further away to afford a home of their own. Then you heard about equity release.

 

A lifetime mortgage could help unlock £££ from the value of your home, helping your family get on the property ladder and keep the family nearby. It can also free up other costs associated with having a baby, like buying cots, car seats, prams, etc.

 

Let’s take a closer look at the benefits of a lifetime mortgage:

  • You can unlock cash from your home, tax-free, to help meet your needs in later life.
  • You’ll always retain full ownership of your home and can stay in it for as long as you wish
  • You can choose to make reduced or no monthly repayments to suit your circumstances
  • You’ll never owe more than your home’s worth with a lifetime mortgage
  • You may be able to remortgage your plan in the future to release further funds or secure a better interest rate, although this isn’t guaranteed and may be subject to early repayment charges

Now, the drawbacks:

  • A lifetime mortgage is a loan secured against your home and subject to compound interest. Meaning the amount you owe can grow quickly
  • Equity release will reduce the value of your estate. And may affect your entitlement to means-tested benefits
  • Equity release may leave you with limited or no property equity remaining
  • Equity release will reduce your financial options in the future
  • A lifetime mortgage is a long-term financial product. It is not designed to be fully repaid until the death of the last remaining borrower; otherwise, early repayment charges may apply.

Is equity release right for you?

For homeowners aged 55 and over with a property worth £70,000+, it helps to release some of the tax-free cash from your property. However, it’s not right for everyone.

 

Factors to Consider

Releasing equity from your home will reduce the amount of inheritance you can pass on. It's important to discuss this with family members to ensure everyone understands the implications.

 

Lifetime mortgages can be a powerful tool for accessing the value of your home. But they require careful consideration. Use professional advice to ensure they are the right choice for your circumstances.

 

Chat with us today to see how we can help!

 

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.

 

Source: https://www.keyadvice.co.uk/equity-release/why/take-care-of-family-and-friends

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Fairview Financial Ltd is an appointed representative of The Right Mortgage Limited, which is authorised and regulated by the Financial Conduct Authority. Fairview Financial Ltd is registered in England and Wales no: 10912424. Registered office: 107 Promenade, Cheltenham, GL50 1NW.

The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.

@ 2020 by Fairview Financial

Our Fees        

A fee may be charged for mortgage advice. The exact amount will depend on your circumstances.

Our standard fee for mortgages is £395 and this is paid when the mortgage is offered. We charge a fee of £295 First-Time Buyers. Other fees may apply depending on the complexity of the work involved or loan amount. The maximum fee we can charge is £795.

Our standard fee for Equity Release is £895 and this is paid on completion.

We also receive a commission from the lender that will vary depending on the lender, product or other permissible factors. The nature of any commission model will be confirmed to you before you proceed. If we receive a commission, this will not affect the cost payable by you.

THINK CAREFULLY ABOUT SECURING OTHER DEBTS AGAINST YOUR HOME.

YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBTS SECURED ON IT.

BUY TO LET MORTGAGES ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.

EQUITY RELEASE: THIS IS A LIFETIME MORTGAGE. TO UNDERSTAND THE FEATURES AND RISKS, PLEASE 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.


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