Choosing the right equity plan is essential for every homeowner. The equity plan you decide on should meet all specifications, so you never regret your decision in the future. As the criteria of each plan is varied, it is important to consider several aspects of the equity plan.
Essex Equity Release offer advice and tips for every equity plan, ensuring you have the information you need to make a good decision.
Long-Term Needs
When choosing our equity plan, it can be easy to think solely about the amount of money you are receiving. Whilst, in the short-term, this is a big priority, it is important to consider your long-term needs. A plan which offers the most money but has a higher interest rate may not help you in the long-term.
By finding a plan that does offer enough funds in the short-term, without having to make monthly repayments or a large lump sum with built-up interest, is always ideal in the long-term. Homeowners must consider which plans are best for now and your future, rather than focusing on the initial money received.
Switching Properties & Plans
Within the equity plan you decide, this will usually include criteria on whether you can switch properties or plans. Many of the equity release plans that are available today offer much better rates and specifications than previous plans. This trend could continue in the future so having the option to change your plan in the future could be ideal.
Whether you are looking to switch properties to a similar style or decide to downsize, this will also need to be included within the plan specifications. If you are considering downsizing, you should also think if there is a need to release an equity plan. Several equity release plans will be available that allow you to downsize. Finding a plan which offers more funds than downsizing would create is essential when you are switching property.
How Much Will It Cost You?
Whilst equity release does not have to be repaid until both you and your partner move out of the home or pass away, it is still important to consider how much each plan will cost you. The majority of homeowners want to leave an inheritance for their family. All our plans have a No Negative Equity Guarantee, meaning there is no debt that your families could inherit.
However, to make sure they receive inheritance once the house is sold, there are several factors to consider within the plan. This includes ring-fencing a certain amount of money you take out that can be left as an inheritance. Alternatively, you can choose to make monthly payments or an early repayment so interest does not build-up or find a plan that will leave you with leftover funds once the property is sold.
You may not want to make monthly repayments, however, this could be the best option for your needs.
Family Considerations
Your equity plan is specific to your requirements but talking to your family about your options is also important. Our team can recommend a suitable plan for your needs. Despite this, family can also offer good advice and make sure you are considering all aspects of the plan so that you make the right decision.
If you do not want to involve family, close friends can also be involved so you have a good understanding of every plan.
How Much Do You Need To Release?
The plan you choose should not always be what offers the most money. Before selecting your plan, you should think about exactly how much you actually need to release, rather than what is the most you could release.
If you try to release as much as possible, it may not give you the best plan for the future. By thinking about exactly how much you want or need, this can often lead to the best plan being chosen.
Contact Us
If you would like advice regarding equity release plans, get in touch with Essex Equity Release. Our team can quickly organise a suitable time to provide our consultation and give you any information needed. Make an enquiry and call us on 01268 799211 or fill in our contact form today.
