We would all like to make the most of our retirement, and it is important to review your finances when planning when to retire, to ensure you can have the retirement life that you are hoping for.
Funding for later life is becoming harder. Many pensions fall short of people’s expectations and people are living longer so finances must last longer.
Some people who took out interest only mortgages are now looking at the mortgage term expiring and have no means to repay the debt. This causes such worry, especially if the only option seems to be moving home and downsizing and you really don’t want to.
The cost of living is going to rise dramatically in 2022. When you live on a pension, there aren’t any wage increases to help cover these costs.
Increasing number of people over the age of 55 are looking at using a lifetime mortgage to secure their financial freedom in retirement.
A lifetime mortgage can be used to pay off interest only mortgages and other debts, fund home improvements, new cars, travel or even help family financially.
There is a lot to consider when thinking about taking out a lifetime mortgage and getting the right advice is crucial. We also need to be sure it is the best option for you.
You can choose whether to take a lump sum payment or drawdown smaller amounts when you need them. You don’t have to make repayments each month and you can’t be repossessed. If you want to make payments to the loan, you have choices. You can make an interest only payment each month or you can make a payment as and when you wish.
Not only that, if you are concerned about being able to leave an inheritance to your family, you can ask for inheritance protection to be included with the plan. This ensures that a certain percentage of your equity will be protected for your beneficiaries.
The Lifetime mortgage has evolved over the years and is now a very good option. It is a regulated product which means as a consumer you are protected by the Financial Conduct Authority and the Equity Release Council sets standards they expect all lenders to follow.
To understand it fully you need an adviser who will sit down with you and explain the whole product to you. For further information, please call Hayley on 01245 806119 or email: hayley@blackberry-mortgage-services.co.uk.
Equity Release may impact the size of your estate and it could affect your entitlement to current and future means-tested benefits.
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