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Equity Release
LBos
Posts: 2 Newbie
We need to raise cash for building alterations and have info about an Age Uk equity release scheme. Has anyone any views on this scheme?
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Comments
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Hi
I can't comment on that specific scheme but some general comments on equity release:
1. It should be your last choice for raising finance. Equity release schemes are generally expensive, with higher than average interest rates (although I can't comment on the interest rate for the Age UK scheme) and the debt soon rolls up as you are repaying no capital
2. You should ensure that the scheme you choose has a guarantee that it won't put you into negative equity
3. Seek Independent Advice. I don't know if Age Uk are independent or tied, however you should always speak to an IFA on these matters
4. Consider other ways of funding the home improvements, do you have savings you could use? Could you use the tax free lump sum from a pension?
5. How old are you? The younger you are when you take out an Equity Release mortgage the more the debt will have time to build up
6. Do you have children who could help meet the cost? This might actually increase their inheritance in the future as there will not be interest rolling up on a debt
I hope these points help.
The Canny SaverAlways looking for a good deal on my savings, generally risk averse, but always interested in new ideas and new ways of doing things.0 -
There are two possibilities:
Age UK use Just Retirement Solutions as an IFA for Equity Release cases. This is fine. But, they also have a tied plan with Just Retirement that they offer (i forget the name: Age UK Equity Release Mortgage, or something). It is always advisable to see an IFA rather than going for the first plan you're offered.0 -
There are two possibilities:
Age UK use Just Retirement Solutions as an IFA for Equity Release cases.
Are Just Retirement an IFA? I thought they were a product provider.
Am sure one of the IFAs on here will put us straight.
The Canny SaverAlways looking for a good deal on my savings, generally risk averse, but always interested in new ideas and new ways of doing things.0 -
Just Retirement are a product provider
Just Retirement Solutions are an IFA
Of course it's somewhat dubious to be an IFA owned by a product provider, but i'm sure they're sufficiently regulated.0 -
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