Are you considering release equity from your home?
“According to statistics, 1.8 trillion of the UK’s property wealth belongs to homeowners aged 55 or over, many of whom benefitted from the low prices of the 1970’s. Since then, the value of homes has increased more than 43 times meaning most UK retirees now owns a home worth an average of £223,000, with Dorset being well above the nation’s average. Low interest rates on savings and shortfalls in pensions mean more and more people are looking at the role their home could play in retirement planning, specifically how equity release schemes can work in their favour, as a way of passing on the value of the property to their children without having to downsize. With that in mind, we turned to the experts at Apex CB to understand the benefits of equity release schemes, otherwise known as a Lifetime Mortgage”.
Pictured above: Liz Murley & Chris Ryan
Who is Apex CB Financial Planning?
“Managing Director Chris Ryan founded the business in 2004, having been in financial services professionally for 12 years, seeing an opportunity to develop a business focused on long-term relationships with a personal approach.
With 35 years in retail banking, Liz has developed a broad knowledge of all property financial matters and is thoroughly competent and qualified in all matters Equity Release. Chris and Liz have a wealth of financial planning knowledge – with a combined almost 50 years of experience between them.
Apex CB handles everything you would expect from a fully independent financial advisory firm, including wealth management, investment, pensions and life assurance and now a full mortgage advice service. Together with Liz’s skills and experience, they are also pleased to offer a full advice service for Lifetime Mortgages”.
What are the main reasons people are releasing equity from their homes?
“Home improvements, a retirement income shortfall and helping family when they need it, remain the top three reasons, followed closely by paying off an existing interest only mortgage.
Research suggests many retired people need up to £10,000 more each year than their pensions provide, releasing equity from your home could help to bridge that gap. Others are looking to equity release as a way of paying for care in the home and even to facilitate a divorce. For those seeking separation, equity release can enable both parties to move forward and buy separate properties”.
So why are today’s Lifetime Mortgage very different to the equity release schemes of the past?
Lifetime mortgages have replaced the older style equity release schemes and are now a flexible and affordable way of releasing equity in your home. It is no longer a niche product as more providers are coming into the market, which is always a good thing for consumers.
Most importantly you always remain the owner of your own home and the equity in it.
You can borrow varying amounts subject to your age and the valuation of your property, typically for those aged 70 you can borrow up to 35%. Recently we have helped several couples looking to top up their income and lifestyle in retirement and they have been pleasantly surprised at all the options available to them.
You can take either a lump sum or a facility known as a cash reserve to draw on when you need it. Because you only pay interest on what you have drawn down this is a good way of keeping the overall costs down and controlling the amount of equity you are using. You are also able to repay some or all of the interest if you are able, to give you greater control over how the loan grows over time. However if you don’t want to pay the interest this can be added to the loan.
Interest rates are currently low and many of the providers will offer a fixed rate for life. You can also move house and downsize and take your equity release mortgage with you – provided the new property and loan outstanding is within the lender’s criteria.
The marketplace and the products have developed and no longer holds the poor reputation it had in the past, with this being said it’s advisable to have independent financial advice and you must take independent legal advice. We at Apex CB Financial Planning Ltd and the lenders we recommend are regulated by the ‘Financial Conduct Authority’, and we are specifically qualified in Equity Release Mortgages.
So, why Apex CB?
“We are proud to be a local, well-established firm offering a personal service. The meetings are always in person and not over the phone, whether in the comfort of your own home or at our office in Poole. We offer a free initial consultation with absolutely no pressure or obligation to proceed – if we don’t think this is the right solution for you, we will tell you so. We are independent of any lender so will research the whole of the market to find the right equity release mortgage specifically for you. Our friendly and professional approach will make sure you fully understand the product and the process thoroughly before you proceed. We actively encourage you to involve your whole family and take your time to make this very important decision; after all this is likely to be your family home and your most valued asset.
We are proud to have helped a number of clients in the last few months for a whole range of reasons, and have received extremely positive feedback saying how satisfied they have been with the service and the advice they have received.
We are regulated by the Financial Conduct Authority and are members of the Equity Release Council”.
What to do next…
Even if this is something you would just like to know more about, please contact our team for a free, non-obligatory, initial meeting.
Remember this is a lifetime mortgage to understand the features, benefits and risks ask for a personalised illustration.
For more information contact Apex CB Financial Planning Ltd on:
t. 01202 622223
a. Suite 2, Jellicoe House, Admiralty Park, Station Road, Holton Heath, Poole, BH16 6HX