Could Equity Release help you during the Coronavirus Pandemic?

The global pandemic has changed the lives of everyone in the UK in many ways. From school closures to movement restrictions though to the financial implications of loss of earnings. Could Equity Release be the right option to help your loved ones during these unprecedented times?

Why Equity Release?

Equity release refers to a range of products that let you convert equity tied up in your home into cash. When you reach 55, you can take the money you release as a lump sum, in several payments or as a combination of both.

This money could then be used to help family members who are experiencing financial difficulties as a result of the current economic climate.

For more information on Equity Release please watch the short video below:

What impact has Coronavirus had on the Equity Release Market?

Releasing equity from your home now could be the right option to help your family through this difficult period.
Most of the mortgage market slowed down to a near stop during the Coronavirus Pandemic due to house viewings being stopped and part of the UK workforce being furloughed. Whilst this impacted so much of the housing market, Equity Release has still been allowed to continue through the use of online applications, video meetings and financial advisers continuing to work remotely. This has allowed financial advisers to continue to offer this key service whilst many banks and financial institutions have been forced to close local banks, and offices on advice from the government to limit the spread of the virus.

What are the Equity Release options?

There are two equity release options:

Lifetime Mortgage

You take out a mortgage secured on the home you live in while retaining ownership. You can choose to ring-fence some of the value of your property as an inheritance for your family. You can choose to make repayments or let the interest roll-up. The loan amount and any accrued interest is paid back when you die or when you move into long-term care.

Home Reversion

A home reversion provider will by some or all your home for a lump sum or regular payments. You can continue living in the property until you die rent free. You will continue to maintain and insure it. You can ring-fence a percentage of your property for later use, like for inheritance. Unless you decide to take further cash releases, the percentage you own will remain the same. Regardless of how property values change. Your property is sold at the end of the plan. Proceeds from the sale are shared according to the remaining proportions of ownership.

For further information on Equity Release you can visit the UK Care Guide website.

What can you do?

If you think that Equity Release could be an option for you and your family then you can check your eligibility and how much equity you can release from your home using our calculator. From there, Chadwick’s can offer you trusted and independent advice from the whole market of options to find the best solution to help you provide for your family through this difficult time. Call us on 0800 833 389 or email us at discover@chadfinman.com to find out more.

Please remember that a lifetime mortgage may not be right for you To understand the features and risks, ask for a personalised illustration.

You must be a homeowner and over 55 years old to qualify. A lifetime mortgage may affect your right to means tested state benefits and will reduce the value of your estate. Our advisers can help discover if a lifetime mortgage is right for you.

Your home may be repossessed if you do not keep up repayments on your mortgage