Equity Release Horror Story (Oct 2021)

Don’t Be Another 'Equity Release Nightmare Story'

Let’s Be Real About the Equity Release Nightmare Stories for a Second – They Suck. Not Because Someone Acquired a Whole Lot of Debt, But Because That Situation Was Completely Avoidable. Keep Reading & See for Yourself.

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Equity Release Horror Story

Equity Release Horror Story. Don’t Be Next.

Do you want to discover the biggest equity release secrets of 2021? Our comprehensive guide has all the tea. Download your free copy today! 

Did you know that 1 in 5 retirees regret equity release?

Don’t be deterred. We’re here to help prevent you from becoming a statistic. Our expert guide will give you all the tools you need to know before deciding to release cash from your home. 

Great news.

Equity release horror stories are usually avoidable, and we’re here to help you discover how. Let’s take a look right now!

Equity Release Horror Story

Stop Making Retirement Harder Than It Should Be

Did you know that 50% of all UK citizens on the cusp of retirement don’t have enough money to get through their golden years without working until the end?

Sounds familiar?

Money is probably one of the biggest stresses in the 21st century, and even more so in a post-COVID world.

Even if you can, relying on family or friends is never ideal, as these arrangements are not always guaranteed. In addition, working through your retirement might sound great now, but you never know how your health might deteriorate and finding work for older folks can be tricky.

Besides, haven’t you earned a well-deserved break?

The burning question is, is equity release one big horror story or could it be the solution you’ve been looking for?

“Possibly The Most Controversial Topic Of 2021 – Equity Release”

Everybody has been talking about it, not just the older generation. Equity is such a game-changer that in the first half of 2021, close to 10,000 new plans were signed. 

However, equity release has a bad reputation because of these 5 myths.

Let’s debunk them right now!

Equity Release Horror Story

5 Most Common Equity Release Myths

Understandably, you’re likely apprehensive to unlock the equity tied into your home. Between stories from the past and historical myths, there’s a lot to learn about the modernisation of these fantastic products.

Here are 5 common equity release reservations:

  • The interest rates are crazy high.
  • Your dependents might pick up a nasty bill.
  • Equity release is unregulated and run by dubious loan sharks.
  • A friend of a friend released equity, and it was disastrous.
  • You don’t want to add more to your mortgage.

These are valid concerns, and it’s vital to unpack these with your equity release adviser.

However, these are all totally avoidable.

For peace of mind, we’ve unpacked each of these myths one by one. 

BUSTED MYTH #1: The Interest Rates Are Crazy High

This was true 5 years ago!

Interest rates were an average of 6.12, far superseding traditional mortgage rates. However, a lot has changed in 2021. Interest rates are at an all-time low! 

These days, your average rates are between 3% and 4%, but some can achieve rates as low as 2.3%. With standard mortgage rates around 3%, things are looking competitive.

In addition, a traditional mortgage involves monthly repayments, but nothing needs to be repaid in your lifetime with equity release. 

Equity Release Horror Story

Important Reminder: You might be able to switch equity release plans. If you took out a plan before 2020, you should see if you can move to a new plan with lower interest rates.

BUSTED MYTH #2. It’s Unregulated

While this was once true, things drastically shifted in 1991. The industry is now strictly regulated.

The Equity Release Council oversees the entire sector, setting standards, enforcing strict rules, and safeguard you from any fly-by-night providers.

The implementation of the council has made equity release a viable option for homeowners over 55.

Their strict code of conduct has numerous rules to protect the consumer. Amongst other things, they ensure you can stay in your home as long as you live, or until you move into a long-term care facility.

Most importantly, they make sure you don’t leave any debts to your beneficiaries, which take us to our next concern.

BUSTED MYTH #3: Your Dependents Will Pick Up Your Debt

No negative equity guarantee; that’s the key term in debunking this concern about equity release. All providers who are Equity Release Council members must commit to providing this service for their customers.

In a nutshell, your family (or your estate) won’t owe more than the sale value of your home when you die or move into permanent care.

In the unlikely event that your property value drops and the sale is not enough to cover the loan payment, the balance will then be written off.

Basically, none of your beneficiaries will pick up any debt from equity release.

BUSTED MYTH #4: You Know Someone Who Did It & It Was Disastrous

Of course, with anything in life, you’ll always hear of bad experiences. However, it’s all about context. 

For example, if your friend releases equity 10 years ago and complains about the interest, their review is irrelevant today. 

However, the greatest equity release horror stories are from before the formation of the Equity Release Council. While the industry was once a minefield of fraud, 2021 paints a very different picture. 

How your modern experience with equity release goes is entirely up to you. You must get top equity release advice, shop around, plan how and when you’ll use the money, and ensure that you have enough to last throughout your entire retirement. 

BUSTED MYTH #5: You’ll Add More to Your Mortgage With Equity Release

This is a common misconception when it comes to equity release.

You must either own your home outright or have a small mortgage remaining when opting to release equity.

You’ll need to use some of the cash released to settle your remaining mortgage before pocketing the balance when it comes to the actual process. 

Interestingly, paying off mortgages or other debts is one of the most common equity release uses. This is likely attributed to the fact that you have zero obligation to make monthly debt repayments. 

The main point is that you don’t restart your mortgage with equity release; instead, you finish it. Who wouldn’t want that?

Equity Release Horror Story

Stop Struggling, and Start Thriving With Equity Release!

Do you want to know how? Let’s start with the 2 main types: lifetime mortgages and home reversion schemes.

Lifetime Mortgage VS Home Reversion – Who Wins?

What you need to know about a lifetime mortgage plan is that you’ll still retain ownership of your home. In a nutshell, you get to live on your property, unlock cash, and not be obligated to repay a cent in your lifetime.

On the other hand, you sell a portion or all of your home with the home reversion plan, but get to stay there rent-free for the rest of your life.

Sounds to good to be true?

A lifetime mortgage is only repaid when you pass away or move into permanent care. If you have a partner, neither of you will have to worry about repayment. Only when the last remaining homeowner passes on or moves into care will you have to pay, which typically comes from the sale of the house.

However, if you prefer, some plans allow you to make monthly repayments on the loan or interest.

Are you worried about your childrens’ inheritance?

Great news!

You can ring-fence some of your property if you want to leave an inheritance for your family or dependents. 

With a home reversion scheme, the percentage of your property you retain ownership of will be left to your heirs.

If you want to know more, our comprehensive guide goes into precise details of releasing equity in 2021. I’ll show you precisely what to watch out for with each type of plan. 

Equity Release Horror Story

Who Needs This Goldmine of an Equity Release Guide?

  • Are you following equity release news and want to have the latest and greatest 2021 insights into these products? All this is available in the guide.
  • Are you new to the world of equity release? You’ll be a master after this read!
  • Are you a retired worker who wants to rather spend your remaining time with your loved ones? This guide gives you 100% clear-cut instructions on how to do just that.
  • Are you trying to renovate your house, but don’t have enough cash because you’re no longer working? We’ll give you the breakdown of how you can access equity from your home while still living there.
  • Are you over 55 and want to travel and explore the world? We have the perfect solution to help you go on new adventures and have a home to come back to.
  • Are you looking to leave your kids with something while still enjoying your life now? Equity release can help you make the most of your time now and STILL leave something for your kids. The guide will show you how.
  • Do you need some disposable cash just to live your day-to-day life? The secret lies within this guide.
  • Do you have monthly instalments eating up your cash flow that you’d like to be rid of?Equity release can help you settle the debt, provide extra cash, and let you stay in your home.

In addition, we’ve got the latest 2021 equity release news to share! 

Get Your FREE Equity Release Guide Here.

Equity Release Horror Story

Need Inspiration of How to Use Equity Release Funds? Look No Further!

  • Boost your retirement finances. Make sure you always have cash on hand so you can visit friends, and treat your loved ones when they visit.
  • Clear that sticky debt you’ve been carrying for years. Eradicate all those pesky accounts notices that need to be paid and actually get some peace of mind.
  • Provide financial support to your loved ones. Does your grandson need his new flat to be furnished? Does your granddaughter need some cash for dance classes? Equity release could be the key to helping them out.
  • Upgrade your home. Use your hard cash to style your dream kitchen and get that garden going you always spoke about.
  • Show the youngsters what an adventure looks like. Take a break from your hometown and pay a visit to a city you’ve always wanted to see. 
  • Experience your dream holiday. You know you’ve been daydreaming about it for years. The time to experience it is NOW! We only live once so make that dream a reality.

Stop Searching For Easier Times, Take Action!

Don’t wait until you retire fully or when an emergency happens that sets you back. 

The process of equity release can take up to 3 months. You don’t want to be forced into a situation where you either have to sell or release equity without knowing anything about it.

We’ve garnered the best strategies and approaches from world-class experts in the field, so you’ll be equipped to make an informed decision.

Our comprehensive guide has already had over 5000 downloads and these numbers continue to grow!

Bonus: Insider Strategies On How To Get 5k, 10k, 30k Or Even 50k+ Lump Sums Or Monthly Payments (Even During Turbulent Times)

Here’s a fraction of some of the things you can find in the bonus features of our guide:

  • The exact way equity release works. How it works for you and how it works for your provider. 
  • The latest equity release news. To keep you in the know. 
  • Exactly what to ask your provider. We guarantee to tell you exactly what to ask and what needs explaining by them. This way, you know precisely what each party gets.
  • How we teach financially illiterate people to release equity successfully. We lay it down in such basic terms that even a child could understand! 
  • The 3 secrets to never again being short of a dime during retirement. Forget garage sales and handouts, we’ll reveal how you can enjoy your retirement and ACTUALLY STAY RETIRED.

Every 12 Minutes: Someone In The UK Over The Age Of 55 Is Unlocking Tax-free Cash From Their Home

Sounds Too Good To Be True?

The great news is that it’s not!

There’s absolutely no catch.

There’s no hidden charges when downloading the guide. It’s simply our gift to you.

***GET THE GUIDE AND ENJOY RETIREMENT***

We’re confident this guide will have a profound impact on your retirement & mortgage. If it does not, we’d love to hear your feedback.

Click below to claim your FREE guide now. You won’t regret it!

Get Your FREE Equity Release Guide Here.

Editorial Note: This content has been independently collected by the SovereignBoss advisor team and is offered on a non-advised basis. Sovereignboss may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations.

Contributors: Nicola Date, Katherine Read
Reviewed by Francis Hui

What people say

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Brenden
SovereignBoss client
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Have You Read Our Most Popular Equity Release Articles?

HOW MUCH EQUITY CAN YOU RELEASE?

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Written by
Rachel Wait
Personal Finance Journalist

Rachel is an experienced finance journalist and editor with a particular interest in personal finance and consumer affairs. She has vast experience writing about money issues, property, insurance, and consumer affairs, and you’ll find her articles regularly featured in top media and newspaper publications.
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Written by
John Lawson
Founder SovereignBoss

John is passionate about education and has made it his life-long mission to assist UK citizens on their future financial options, with a specialist interest in equity release, and SovereignBoss is the natural extension of this passion.
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Written by
Francis Hui
Senior Risk Manager

Having held various high-level roles across the industry, Francis is truly an expert in aiding UK citizens in their financial decisions and risk analysis. His unique insight and statistical knowledge make him the perfect person to help you take your financial future to the next level.
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Written by
Katherine Read
Financial Planning Reporter

Since joining the editorial team at SovereignBoss, Katherine has become focused on bringing transparency to finances and opportunities for those approaching retirement age. She writes on the topics of equity release, home reversion, and mortgages.
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Written by
Nicola Date
Writer & Journalist

Nicola is a financial writer for SovereignBoss and is passionate about the opportunities that equity release can open up for homeowners. Her extensive business experience and deep understanding of the industry means that she’s always up-to-date with the latest developments.

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