Many people who have struggled with the financial crisis may have seen an impact on their credit rating. This might have led them to believe that their options are narrowing on what types of products and services are available to them. However, while this might be true, there could be more options available than they had assumed, and it is worth some careful investigation before writing off some finance options.
For people over 65 and in retirement, there are still many options for equity release available. These consumers should be careful of what products they select and look for advice from the Safe Home Protection Plan (SHIP) on their options.
However, equity release might be the kind of product which can help them restructure their debt to a more manageable amount.
Equity release can take many forms. It is quite common to see equity release products in the form of lifetime mortgages. In this instance, an interest only mortgage is taken out on the property of the customer, who then pays back the interest on that mortgage only. The mortgage stays on the property until paid off or it exchanges hands, and the value of the mortgage is then recovered.
Equity release is an excellent way to raise money if the customer has already paid off the mortgage on the property. This makes it easy to restructure finance to make it easier to manage in these financially tough times.
