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How To Find The Right

Equity Release Deal At The Best Price

Conclusions: How to find the right Equity Release deal
This guide will go a long way to making sure you find the right equity release deal for your circumstances because it concentrates on 3 main points -
  1. Making sure you look at the 'whole of market'

  2. Making sure you fully research all the suitable deals and compare them against each other, and

  3. Gets you to focus on both the flexibility and the all-important charges
Charges, or rather excessive charges, are normally the downfall of any product and many banks and finance houses try hard to hide and obfuscate them from their clients. One reason so many people get overcharged for financial products and advice, and not just equity release, is because they have no experience of what sort of charges and costs are reasonable.

But by doing plenty of research anyone can easily turn from a naive buyer into a knowledgeable one, and so can easily be able to spot any potential monkey business. And an informed and knowledgeable buyer normally always gets the best products, not only the ones that are most suitable, but the ones at the most competitive prices.

Is Equity Release the right product for you

Finally, I would like to make the following point clear.

Equity release does not have the best reputation among independent financial commentators, ie those who aren't in the business of making money from it. Their main arguments relate to flexibility or the lack of it, and the fact that interest is compounded so making the average loan double in value every 10-11 years.

I would therefore like to recommend the following -

  1. Use equity release as your last resort and try to find other options of realising any built up equity in your property. To me the best alternative is to downsize your property and use the excess cash for living expenses, and

  2. If you do raise money then don't fall for the crass lifestyle marketing and start blowing your cash on luxury cruises, new cars, or gifts for the family. The majority of people who do this are sure to have money troubles further down the line. Instead, be smart, and spend a maximum of 10% of any money raised on luxuries/holidays but devise a sensible spending plan for the other 90% of the cash which for most people will mean using the money to add to their income.
I hope you've found this guide useful and if you do decide to take out an equity release deal then the best of luck.

Alex Green

LearnMoney's 10 Secrets of Good Personal Finance
This mortgage guide has been written with the strategies and tips from our 10 Secrets of Good Personal Finance very much in mind.

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