While equity release offers financial opportunities, it's essential to be aware of potential risks and considerations:
1.Reduced Inheritance: Equity release diminishes the inheritance you leave for your family, as the borrowed amount and accruing interest must be repaid in the future.
2.Compounded Interest: Unlike traditional borrowing, equity release doesn't mandate monthly repayments, but compounded interest can significantly increase the total repayment amount over time.
3.Value of Houses: Property values generally rise over time, which can offset the final repayment amount. Utilize our free calculator to estimate your estate's potential value when the plan is repaid.
4.Impact on Benefits: Consult your Paxton Equity Release adviser regarding any means-tested benefits, as a substantial lump sum may affect eligibility. Mitigation strategies can be explored.
5.Early Repayment Charges: Some equity release plans entail significant early repayment charges. Discuss future repayment considerations with your Paxton Equity Release adviser.
Understanding these aspects ensures informed decision-making when considering equity release.
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