302020Jan

Financial planning for the next decade

With people living longer and pensions not always sufficient to maintain a lifestyle of your choosing, or to meet your financial needs, equity release can be a financial solution for an increasing number of over 55’s.

With the equity release market having seen year-on-year growth since 2012, according to recent research from Canada Life*, the majority of financial advisers expect the equity release market to exceed £5 billion in 2020.

*Mortgage Finance Gazette, 23rd December 2019.

Some popular reasons people use equity release are:

  • helping to pay off an existing mortgage
  • gifting money to family; perhaps for house purchases, weddings or further education
  • paying off debt and/or providing a financial income, if pensions are insufficient
  • setting up a business and becoming self-employed
  • fulfilling life-long dreams such as travelling the world and ticking off “bucket list” items and purchases
  • retiring earlier, to spend more time enjoying life with loved ones
  • to fund private healthcare, such as paying for home carers and/or adapting your home
Top 5 reasons for Equity Release in 2019

*Bower data Jan-Dec 2019

If you are over 55, own your own home and would like extra funds in a one-off lump sum or alternatively, a lump sum followed by smaller amounts, then it could be an option for you. With 2020 seeing new equity release plans with lower rates, now is a good time to investigate the most suitable product for your personal circumstances and to make plans for the next decade.

  • You can use these tax-free sums for whatever you wish, without having to sell your house or move home.
  • You can also choose to ensure that your children can still receive an inheritance, by utilising an “Inheritance Protection Guarantee”, where appropriate.

Deciding whether to release equity from your home is an important decision and not to be taken without professional advice. A lifetime mortgage is the main type of equity release plan, however, Bower can advise on all equity release products from the whole of the market, ensuring you are aware of the advantages and disadvantages of both, before making a decision. Equity Release may not be suitable for everyone but Bower have over a decade of experience as award-winning equity release specialists and are truly dedicated to helping you get the best possible outcome.

If you have any questions or would like to discuss your equity release needs, you can call our UK-based professional Contact Centre on Freephone 0800 411 8668.