How can you choose between all the different equity release plans available?

Friday, 03 February 2012 02:28

Seeking equity release advice may be wise

The equity release market has gone from strength to strength in recent years for various reasons.

One of them is the number of different plans available. While this is a good thing for the fact it gives you plenty of choice, it can be a double-edged sword for the fact that it makes choosing the right scheme more complicated.

Choosing an equity release plan is not a decision to be taken lightly as it requires you releasing cash from your home in order to fund your future.

Before you start, it is important to bear in mind that equity release should be considered alongside other ways of raising finance, as it may be the case that there are more cost-effective ways for you to raise the funds you need.

To ensure you make the correct decision, you need to know what your options are. The five main types of equity release plans are lifetime mortgages, drawdown lifetime mortgages, interest-only lifetime mortgages, home reversion plans and enhanced lifetime mortgages.

Now that you are aware of your choices, the next step is to examine them carefully and to ensure you fully understand how each of them works.

For example, lifetime mortgages allow you to withdraw a lump sum of cash, while drawdown lifetime mortgages give you the option to withdraw funds as and when you need them, so it is important to understand the distinctions between each product.

Once you are clear on how the products work, you need to weigh up the pros and cons of each and decide whether they meet your criteria or not.

Deciding which equity release plan is right for you is not a decision you have to make on your own.

Seeking equity release advice from an independent adviser will allow you to discuss the situation with an expert and explain to them what your aims are.

They will be able to explain in exactly what each plan entails and how suitable they are given your personal circumstances.

Companies such as Key Retirement Solutions have dedicated teams in place who are there to help individuals like yourself make the right decision.

Releasing equity from your home is a major financial decision and it is one you need to be absolutely sure is right for you. By speaking to an independent equity release adviser, you will be giving yourself the best chance of getting it right first time.

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