10+ FAQ’s Every Consumer Needs to Know Before Getting the Equity Release
What Is Equity Release: Questions & Answers Buying a home is an exciting and important decision, yet it can also be stressful. There are many considerations to think about when deciding if you should buy a house or not. One of the decisions that often goes overlooked is whether to get equity release. Here are some Equity Release FAQ’s: Q: What are some reasons why someone would want to borrow against their house? A: It may be because they’re looking for more money than what’s currently in their bank account, or maybe they just want easier access without having monthly payments. Q: What are some pros/cons of getting an equity release? A: Pros include possibility that there may be more money in retirement than originally planned for. Cons can include potential risk that when interest rates rise, it could make the loan difficult to pay off, and ongoing payments without being able to see progress on savings account balance (although this depends on how much has been saved). Q: How do I know what my property value is? A: There’s no exact way to know this, but you can request an appraisal on your home. Q: What affects the interest rate? A: The term of the loan, age and income have factors that affect how much money is needed to be repaid each month Q: How do I know if it’s a good idea for me to get my equity release now? A: If there are no major expenses coming up in retirement and you enjoy having more flexibility with your monthly payments, then this may be a good option. Q: Do I need to pay back any funds from my savings account during or after the loan process? A: Yes – Equity Release companies will take out all proceeds from the cash value of their life insurance policy before they receive anything else. Q: How to get an equity release for my property? A: The process of borrowing against your home is called equity release. You will need to contact a specialist who can help you decide if this option is right for you, and then they’ll be able to find the best deal available. Q: What is the maximum amount of money I can borrow? A: The maximum amount that you may be able to get, will depend on your property’s worth and what kind of valuation it has. Q: Does equity release have any impact on my state pension? A: No. However if you are planning to apply for a lifetime income drawdown plan with an annuity provider, then this would have an effect as they do not offer these services in conjunction with equity release products.