What is equity release?

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Here at Your Mortgage Hub, we advise people just like you on equity release and other financial options. If you’ve been looking into equity release options and how they might work for you, you’re in the right place. We’ll give you all the information you need about equity release and how you should go about pursuing this option. Read on now to learn everything you need to know.

The Two Types of Equity Release & How They Work

There are two main types of equity release that you can take advantage of when you’re looking into this option. The first is a home reversion plan and the other is a lifetime mortgage. These two types of equity release options are both regulated by the Financial Conduct Authority, which should give you peace of mind

Home equity release plans work by allowing homeowners to take a lump sum out of the value of their home. This allows them to access funds while still living in the home. It doesn’t have to be a lump sum though; you can also choose to withdraw small but regular sums of money from the home’s value.

Equity Release and Retirement Funding

For many people, equity release products are an important part of retirement funding and planning. It makes sense if you want the option of accessing cash without having to give up your home or downsizing. Every year, many people use equity release products to make their retirement more comfortable and sustainable.

Tapping into the wealth you have in the form of your home is a great way to ensure you’re able to live sustainably without having to worry about financial issues. It can be a key part of a person’s retirement planning, so it might be something for you to look into as well.

Using a Financial Advisor

If you’re thinking of choosing an equity release product, it’s vital you turn to a financial advisor who can guide you in the right direction. They have the knowledge and expertise to help you understand these complex issues and implications. 

When choosing any new financial product that’ll have an impact on your life and your finances going forward, it’s always important to get advice from people who know what they’re talking about. Using a financial advisor makes that possible.

Understand All the Features, Benefits and Risks Before Taking Action

There are many features, benefits and risk associated with the various equity release products out there. It’s important to know and understand all of these things before you take action and make a final decision on which one to choose.

If you’re thinking about pursuing an equity release option, be sure to consult a financial advisor and find out more about the options open to you. This is a big step to take and it might be the ideal solution to the financial challenges you’re facing. Your Mortgage Hub is here to help you with all that and more, so don’t hesitate to get in touch.

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