Equity Release Questions.

shakyhandbob

Hi, I'm 70 this year & my wife will be 65. We own our house & have no children or any relatives needing money. I only have a state pension & so will my wife next year, so we are seriously considering the ER option to boost our retirement. Downsizing is only an option if we move somewhere much cheaper than here (Devon), Scotland for instance, so it's looking like quite a good option. It's just that there seems to still be such a lot of negativity around ER, just wondered what the general consensus is? We are meeting with an ER specialist FA next week so maybe some good questions to ask him would be helpful.
Thanks.

Whats_your_forte

Worth doing based on what you have stated if the money is needed to boost income. In terms of the downsize, you'll release an initial amount but then again would be addressing ER when this initial amount has gone. Main features to be looked at would be flexibility and regularity of withdrawals (as this would work better if being used to boost income). If an income issue, then flexibility in overpayments may not be a feature you need. And if you do have the burning desire to move later on in life, the key element will be the way the repayment charges are calculated (fixed/gilt) plus the portability of the mortgage if you move.