Equity Release Market Set to ‘Boom Under Virus’

House prices in 2020

A recent report from Financial Adviser indicates that some experts believe the demand for equity release is set to increase as a result of COVID-19.

One of the reasons for this is due to consumers looking to use equity release to supplement retirement income as markets ‘tumble’

If this is true, it’s vitally important to seek specialist advice before arranging a mortgage in retirement.

What advice is needed?

Firstly, it’s important to seek Independent Financial Advice from a pension specialist to make sure considering a mortgage is the right approach.

If so, there are a few mortgage options to consider. The most common are –

  • Standard mortgage in retirement
  • Retirement Interest Only Mortgage
  • Lifetime Mortgage

There are pros and cons to each approach. The decision should be based on your individual circumstances, goals and objectives.

What needs to be considered?

The starting point needs to be how much money you need (or want). Then you need to consider the best way to get it.

Should you use your pension, savings, investments or a mortgage? Assuming you have options, this decision usually comes down to tax and/or investment return.

Speaking with an Independent Financial Adviser who specialises in pensions and investment is a good place to start.

It’s then a good idea to speak to an Independent Mortgage Adviser. It’s important to speak to one who specialises in later life lending. There are many options aside of traditional equity release that need to be considered.

Once you have an outline of your options, you can make good informed decisions on what it best route for you.

The good news is that there are many options available. However, it’s important to get the right advice to avoid potentially costly mistakes.

Please see our guide to lifetime mortgages for more information or contact us for a free consultation with no obligation.