Reset interest-only countdown with equity release
January… the time of year where the mind focuses and we remain determined to ‘get things sorted’. From finances to health, our homes to our admin many of us use the momentum of the ‘new year’ to restore some order in our lives.
But for the many people with an interest only mortgage drawing to a close this year, ‘getting things sorted’ is no easy feat. Or is it? Richard Espley, Head of Equity Release, explains one viable option for homeowners who can hear the tick tick tick of the interest-only countdown clock:
“For approximately 150,000 homeowners 2014 will be the year their interest-only mortgage reaches the end of its term. Whilst many have the funds in place to make that final payment, there will ultimately be a large number who do not.
“Some homeowners may choose to sell up in order to raise the collateral needed. However for those who are reluctant to uproot and leave what is likely to be the family home, equity release offers another avenue.
“Given the increase in property value compared to when they first bought the property, an equity release plan could allow them to repay the outstanding balance on their mortgage whilst retaining the right to reside in the property.”
Content correct at time of publication