How will your bank statement impact an equity release application? Mark Gregory of Equity Release Supermarket has some good news for a reader who is worried about their monthly spend…
The Question
I’ve been considering taking out equity release and my niece has been helping me with finances. She took a look at my bank statement and said I’m overpaying for things I don’t need and I have subscriptions I am not using.
Will this be used against me if I apply for equity release? How do I get help to get my finances in order before I apply? I need to access the money in my home so I can pay off some debt and to increase my retirement income.
Mark’s Answer
It is really nice to hear that your niece is there to help and guide you, and similarly we encourage families to be involved when our customers are considering equity release.
Rest assured that applying for and securing an equity release plan is not dependant on your current financial position including what monthly subscriptions you have, or if you are overpaying for services.
With Equity Release you have many options, and these are dependent on your objectives, your current situation and your plans for the short, medium and long-term.
The basic eligibility for equity release including Lifetime mortgages, Home Reversion Plans and Retirement Interest-only Mortgages (RIO), is that you must be a homeowner, a UK resident and over 55; however, there are some options available from age 50 – such as RIOs.
One of our expert, whole-of-market, independent advisers with the support of your niece, if you would like her to join the meeting, will complete a financial questionnaire that you will keep, that is based on your personal, unique circumstances.
This questionnaire will allow your dedicated adviser to assess your objectives and understand what features and benefits you require now and in the future. They will also assess your ability to apply for means tested benefits which can help with the current cost of living.
They will then make a bespoke recommendation with the features you require, based on your capital and future estate planning requirements. These features can include making voluntary, contractual or no payments, inheritance protection guarantees, an initial cash lump sum, and future capital reserves.
Like many financial products there can be some risks, such as house price inflation and compounding interest; however, your expert adviser will explain these to you, they will confirm everything in writing, and you will have the benefit of discussing your plan with an independent solicitor before you make a final decision.
Finally, rest assured that you will not have to pay for any advice until you are 100% satisfied and any recommended plan has completed, and you have the proceeds in your bank.
Meet our expert…
Mark Gregory, founder and CEO of Equity Release Supermarket, is here to answer your questions. Mark is an adviser himself with over 20 years equity release experience.
He launched Equity Release Supermarket 10 years ago and it has grown to become one of the UK’s leading equity release specialists.
Email kate.saines@emap.com to ask Mark a question
