Stay at home with equity release

Video transcript

The vast majority of over 65`s want to stay in their own home during retirement and taking out an equity release plan could enable them to modify it so that they can.

Figures from the Equity Release Council (ERC) show that 70 per cent of retirees don`t want to move when they finish working, but one fifth of these have been put off the idea of adapting their home to serve them better as a result of a lack of funds.

The kind of things that generally need attention are staircases, gardens and bathrooms, in the forms of things like stairlifts, raised beds and walk in baths, respectively. Most over sixty fives would prefer to dip into their savings to do this, but when that`s not an option, equity release could be.

Nigel Waterson is the chairman of the ERC, and he explains that `with many over-65s asset rich and cash poor, it is a logical step to consider releasing some of their housing equity to prolong the pleasure they take from spending their retirement years in the place they call home`.

Should you find yourself in this position, you could contact First Choice Finance, as we`re a broker that can help you find the most suitable equity release plan for your individual situation from our panel of providers. All our advice is done by telephone and post and after discussing your needs, if we can help our advisers will work on our deals to find one that matches you.

You`ll be presented with a no obligation offer which you`re free to turn down, but if you think the plan is right for you, we`ll work on getting the equity released and your funds to you as soon as possible. Find out more about our equity release options at firstchoicefinance.co.uk or call for a confidential chat on 0333 003 1505 or 0800 298 3000.

Home Equity Home Loans

Buying your own home is probably the biggest investment you`ll ever make. Your home is also likely to be your biggest asset. Why not put this asset to work by taking out a home equity loan?

What is equity?
Equity is simply the difference between what your property is worth and what you owe. For example, if you have £200,000 to pay off on a home worth £500,000, you have £300,000 worth of equity. You may be able to borrow against this amount to renovate, consolidate debts, buy another property or refinance your mortgage for a number of other reasons.

How it works
An equity home loan gives you a line of credit on your property up to an approved amount, the amount you are able to borrow will depend on the amount of equity you have available in your property, how much you can borrow also depends on your situation - your existing borrowings, income and assets are taken into account. And if the equity is for an investment property, your new and current property values may be assessed.

Benefits
Saving for renovations or a deposit can take time. Taking out an equity home loan means you can start your renovations or buy an investment property sooner. However, it is important to remember that all debt needs to be carefully managed to maximise investment returns and minimise risks.

Homeowner Secured Loans 9.8% APRC. Representative example: Borrow £50,000 over 180 months. 60 months at 8.1%, £497.83 pcm fixed at 60% LTV. Then 120 months at 10.1%, £539.89 pcm variable. Total payable £94,656.60. Total cost of credit £44,656.60 (including: £795 lender fee, £985 broker fee & £42,876.60 interest). First Choice are tied to certain loan providers.

Mortgages & Remortgages 8.4% APRC. Representative Example: Borrow £120,000 over 25 years at 5.99%, £778.86 pcm fixed for 3 years at 60% LTV. Then at 8.75%, £974.86 pcm, variable for 22 years. Total payable £286,416. Total cost of credit £166,416 (including: £985 broker fee, £999 lender fee & £164,432 interest)

Unsecured Personal Loans REPRESENTATIVE 49.9% APR (VARIABLE) First Choice are tied to certain unsecured lenders.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. Security is required on immovable property.

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.