Most of us go to college for 4 years, and then we graduate and start our careers. But what happens if you have spent years slugging away in a boring position, and it’s time for a career change before you retire?
It’s never too late!
In addition, you might have children or grandchildren who dream of top-quality education. The cost of education can be overwhelming, but equity release can help make this dream a reality.
Equity release allows homeowners over 55 to unlock cash tied up in your home to use as you wish.
This can include paying for further education or college tuition for you or your family. Let’s find out how you can make that happen!
How Much Will Further Education Cost You?
A fully funded college education will cost between £20,000 and £30,000 per year for the duration of your studies. This can range from 3 to 6 years, depending on the course of your choice.
This can be expensive even without considering equity release, so it’s important not to underestimate how much you’ll need to save.
These days, there is a myriad of online short courses available that will allow you to shift in a new direction. These are an inexpensive alternative to a college education.
Equity release can be a good way of paying off all these costs, which is not only cheaper in the long run but also provides you with financial security, especially if your parents are no longer around to support you financially or provide equity in their home.
Equity release gives you or your family the option to pursue higher education past your GCSEs1.
4 Equity Release Plans for Tertiary Education
£250,000 Mortgage Equity Withdrawal Plan (MEWP)
This is a flexible loan product with the ability to repay early without penalty2 or interest charges. This can be paid off in full by the time your son goes to college when you’ve saved up enough money and don’t need equity release.
£400,000 Equity Withdrawal plan Plus (EWP+)
This is a more flexible product with the ability to withdraw equity in stages until you reach your target amount of funds. This can also be paid off early without penalty or interest charges, and so it’s often used when children are older than university age for equity release.
Equity Release Plan Plus (ERP+)
This is the same as an EWP+, but with a guaranteed annuity3 from day one to provide you, or your loved ones, with income for life. This can be used when children are older than university age, and so it’s often used when equity release is required over a longer period of time.
Equity Release Plan (ERP)
This is an equity withdrawal plan without the annuity, so it’s often used when children are younger than university age for equity release.
How Can Equity Release Help Me Pay for College or Further Education?
Equity release can help you pay for college or further education. If you are over 55, use equity release as a way to make payments towards college tuition, living expenses while studying and more.
A person would need equity release equity withdrawal plan (ERP) or equity release with an annuity (EAP+) if they are younger than university age.
What Equity Release Plan Should I Go For?
The equity release plans are typically offered by lenders and so it’s important to find the best one that is right for you.
2 Main Equity Withdrawal Plans
- Equity Release Plan (ERP) is just equity release;
- Equity Release Plus (ERP+) is equity release plus an annuity.
What Equity Release Plans Don't Have a Fixed End Date?
Equity release plans never have a fixed end date. They end when you pass away or move into permanent care.
Whether it’s for yourself or a loved one, education is one of the best gifts that you can give someone. A world-class education can catapult you towards the success that you have always dreamed of.
Therefore, one should never stint on education, and equity release might just be the way for you to achieve this goal.
Speak to your independent financial adviser today to learn if equity release is the best option for you and your family. In addition, you might want to look at the pros and cons of equity release before making your final decision.