Equity Release: what would you do?

Friday, 16 December 2011

This is the question recently asked by ERIC – The Equity Release Information Centre one of the UK’s leading equity release brokers to their clients when taking out an equity release plan.

With people having more time in retirement, not surprisingly leisure activities were amongst the main reasons for taking out such a plan with 24% of clients saying they would spend the money released on home and garden improvements whilst 13% said they would go on holiday and 12% said they would look to buy a new car. But leisure activities were not the only reasons for taking out an equity release plan, some 16% of people said they would use the money to pay off their debts, 9% saying they would clear off their outstanding mortgage and 6% saying they would use the money to help with regular bills.

So what is equity release?

Essentially, most equity release schemes operate by lending you money against the value of your existing home and you can choose to receive this money in either a lump sum, or a monthly payment dependent on your financial needs.

Equity release allows you to continue to live in your own home until you die, until you may have to move into full time care or until such time as you decide to sell the property – and maybe downsize into a purpose designed retirement property. Once the property is sold, the equity release loan and the interest that has accrued on this will be repaid and the remaining sum will either then go to you or form part of your estate.

How do I know it is right for me?

Well, at the outset you don’t know the answer to this question - it may well be that there are other alternatives that are more suited to your circumstances than equity release. ERIC will take you through an extensive question and answer process to determine the answer to exactly this question – and if equity release is not right for you then they will tell you.

How easy is the process?

The process couldn’t be simpler – a representative of ERIC will talk you through the application process and will be there to answer your questions every step of the way. Their customer services team understand that taking out an equity release policy is a big decision – and are well trained to assist and help in any way they can – indeed a recent customer survey revealed that 99% of people who have taken out an equity release plan with ERIC say they would recommend the company to a friend.

So what do I do if I want to find out more?

Simply call ERIC direct on 0800 077 6599 and quote the reference Mature Times – it couldn’t be any easier!