As more retirees seek information on equity release, questions about safety, obligations, and ensuring inheritance for children become prevalent. At Paxton Equity Release, our advisers address these concerns daily. Before committing to a lifetime mortgage or home reversion plan, consider the following key factors
When considering a mortgage, key factors include choosing between fixed or variable interest rates, and deciding on a short-term loan with higher payments but less interest, or a long-term loan with lower payments but more interest. A larger deposit can secure better terms. Ensure monthly payments are affordable, considering all fees and costs such as application, valuation, and legal fees, along with any early repayment charges. Understand the repayment options, whether repaying both interest and principal or opting for interest-only with the principal due at the end. Your credit score will influence available options and rates, and lenders will assess your financial situation to determine affordability. Choose the right mortgage type for your needs, be aware of insurance requirements, and stay informed about market conditions. Professional financial advice is recommended to navigate these decisions.
However, this list is by no means exhaustive and we advise speaking to one of our expert Paxton Equity Release advisers as your next step.
