5 Common Equity Release Myths

Equity release, if described naturally, is getting the lifetime mortgage on your house. By doing so, you receive the lump sum cash amount equal to your house value. This insures a steady stream of income. It must be, however, keep in mind that the income provider must be later repaid that amount. Applied to people over the age of 55, equity release is now UK’s fastest growing financial service.

All equity release providers are now regulated by the Financial Conduct Authority (FCA) thereby ensuring consumer protection. Additionally, there is an Equity Release Council (ERC) which provides equity release specialists and advisors.

With all your doubts covered and such baseless myths covered, we believe that you are now not only more aware but better informed as well. To know about other details about equity release.  You can now head straight up to your consultant without the fear of losing your house, money or both.

Misconceptions Regarding Equity Release

Homes that have been given to us as a part of the inheritance, seem to have a lot of emotional chains attached to them. Thus, there is always an emotional tug that you will feel in case you decide to give it up for equity release loan. The thought of not leaving anything behind for your family is another issue. The equity release plans allow you to take care of this problem as well. You can not only get a loan against a part of your home but also get to protect a certain percentage of it for your family to use when you are no longer around.

It is common for the elderly to want to live a life of convenience and comfort as they begin to age. With no other viable option in hand, getting the equity released against the home they are living is sometimes is the only option they are left with. However, with is many misconceptions to cloud their judgment, making the right decision isn’t as easy as it would seem.

This is why we have come up with the most common misconceptions that you will have to know about before you go ahead with the plan. However, you can always find out more about the various equity release plans you have or talk to a trained advisor to guide you better. 

Busting Some Myths

Credit reports are used by lenders to scrutinize the borrowing request of the applicant. However, there are a couple of myths about credit reports, how they are made, and what they entail. Here we discuss these myths about credit reports in detail.

Factually, co-signed accounts appear on credit reports just like any other account. Their usage and payment details are also mentioned. They cannot be removed unless your name was cosigned without consent. 

To know more about different credit reports and get access to unlimited credit reports across the UK.

Reading a Credit Report

Credit reports are a reflection of all such decisions that you made and are a depiction of your consumer behavior. A good credit score can give you more power and freedom. The company will not only have a way out in case of the financial crisis but can also be more secure.

Depending on the number of years the company has been in business, the length of this section may vary. This is not it. The section will also have details on the collection accounts which may appear in the same section or someplace else depending on who is compiling the report. 

Since it is a consolidated credit report, you should also expect to see public records mentioned explicitly in the report. They would include overdue payments for child support, tax liens, bankruptcies, court records for the country and other relevant data.

Improve your credit score

A credit report is a depiction of how you have been using the credit in your company accounts and how well you have been handling the loans along with the overall finances. It helps set your reputation in the market and makes it possible for you to seek out financial help when the times call. However, if you for some reason end up with a bad credit score then it doesn’t necessarily mean the end of the world for you.

Did you know that most of the creditors take an average of your cumulative credit score? So, get the report done by multiple agencies and have them all presented to the creditors when applying for financial assistance.

Improving that credit score can get you a more favourable outcome.

Did you know that most of the creditors take an average of your cumulative credit score? So, get the report done by multiple agencies and have them all presented to the creditors when applying for financial assistance.

 

Equity Release Plans

Equity release plans can prove to be the solution to all your problems if you play it right. So, work out all the details and think of how you can use the amount to change your life and that of those around you.

When comparing to remortgaging, there are various reasons why we feel equity release schemes tend to come off as a better option. . They allow you more freedom to spend the money that you have while giving the lending company fewer reasons to keep you tied or anchored down.

To learn more about Equity Release plans read the following article

You have all the options to switch the plan from one property to another as long as it meets the criteria and the area limit. When you move to a property bigger than the one you have now, the difference of the value will be transferred to your account. In case the new home is smaller the remaining amount would have to be paid by you.