As later life lending specialists, our team regularly spends time with clients looking into the best options they have to release funds for various purposes and there are a number of different reasons that people choose later life lending as a good way to raise a lump of capital from their property.
You can read more about later life lending in our article here and in a nutshell, later life lending (also known as home reversion plans and lifetime mortgages) is available to those aged 55 and over.
But what are some of the most common reasons we find people choose to look into later life lending?
Well, from speaking with our clients, we generally find that six of the most popular reasons people choose to investigate later life lending are:
- Home or garden improvements
- Paying debts
- Holiday funds
- Gifting to friends or family
- Clearing outstanding mortgage funds
- Help with regular bills
This is not an exhaustive list however, and there are numerous other reasons that people choose to investigate later life lending.
It is, however, crucial that you have access to the right advice when considering later life lending. Average interest rates have never been so low, and this sheds some light on why later life lending may be becoming such a popular option.
The graph below, put together by the Later Life Lending Council, illustrates how the average interest rate is just 3.95% as of Jan 2021.
Equity release refers to home reversion plans and lifetime mortgages. To understand the features and risks ask for a personalised illustration. You can either call us on 01322 553282 or contact us online.