Equity Help

Equity Release is a long term commitment. It involves you using your home to borrow money and the interest is added to the original balance so the debt can grow quite quickly. Moving home or settling the debt early is usually both difficult and expensive.

You should consider alternative ways to achieve your financial goals before borrowing money by releasing equity. Please study the information below to help you understand what some of the main risks are and which alternatives may be available to you.

Alternatives To Equity Release

Downsizing

Sell your home and buy a smaller / cheaper property. You could then access equity without borrowing and move closer to family / friends / amenities you may need. Debt from equity release usually ``rolls up`` on top of the amount you initially borrow, so the interest element can grow quite quickly.

Use Pension / Savings

If you have pensions, they could possibly be restructured to improve your income. Also any savings you may have may be enough to cover your goals without using equity release. Please seek Independent Financial Advice to find out more.

Debt Help

Before using equity release for debt consolidation you can try speaking to your lenders for a reduced payments arrangement. Note: Rescheduling your debts may affect your credit score. You can also try the Debt Helpline or consider a personal (unsecured) debt consolidation loan instead of securing the debt on your home.

Family Help

Can your children or other relatives or partner help? By giving you financial support now it prevents the erosion of the estate caused by an equity release plan.

Check Grants / Benefits

You may qualify for grants from the local council, charities or the government if doing renovations for wheelchair access etc. You may also may qualify for grants / reductions if replacing an old boiler. Contact your local council for more information.

Pension Credit

Do you qualify for pension credit? If you are not getting full state pension and have quite low / no savings you may get weekly money as pension credit. Then once you are getting pension credit you may qualify for other savings e.g. Council tax reduction. Contact the benefits offices.

Potential Impacts Of Equity Release

Loss Of Current Benefits - If you take money out and save it or get interest paid on it, then you may lose means tested benefits currently being received. E.G your pension credit income could be reduced or stopped. Potentially losing out overall. Check with the benefits office first or consult a specialist adviser.

Thinking Of Moving? - Equity release is a lifetime borrowing commitment. There can be severe financial penalties if you want to move home, especially in the short to medium term. If you are thinking of moving make sure you tell your adviser at the start of your application, so they can find a plan that allows you to move - if one is available.

Worried About Inheritance? - Equity release will diminish the value of your estate on death. The property is also usually required to be sold at that time, so you can`t leave it for someone else to move into it. There are complex taxation rules around this area. You should consult an Independent Inheritance Tax & Planning Adviser before you commit to equity release.

Equity Release Lifetime Mortgages This is a lifetime mortgage. To understand the features & risks ask for a personalised illustration. Our fee is £985 which is only payable upon completion. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. 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.

Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk

Established In 1988. Company Registration Number 2316399. Authorised & Regulated By The Financial Conduct Authority (FCA). Firm Reference Number 302981. Mortgages & Homeowner Secured Loans Are Secured On Your Home. We Advice Upon & Arrange Mortgages & Loans. We Are Not A Lender.

First Choice Finance is a trading style of First Choice Funding Limited of 54, Wybersley Road, High Lane, Stockport, SK6 8HB. Copyright protected.