Drawbacks to consider and how you could manage them
Equity release is usually a lifetime commitment, so you should be aware of its pitfalls and potential solutions before going ahead with a plan.
We want all of our customers to be able to make an informed decision, so we’ve put this handy guide to help anyone wondering “what are the pitfalls of equity release?”.
In this guide to the pitfalls of equity release, we will explore the following:
- How does equity release work?
- The 10 pitfalls of equity release:
- Pitfall 1: The cost of compound interest
- Pitfall 2: An effect on entitlement to state benefits
- Pitfall 3: Tax on savings interest
- Pitfall 4: An impact on eligibility for homecare
- Pitfall 5: Reducing inheritance for loved ones
- Pitfall 6: Loved ones may incur inheritance
- Pitfall 7: Early repayment charges
- Pitfall 8: It’s an expensive option if you are younger
- Pitfall 9: Releasing more than you need
- Pitfall 10: Missing out on house price rises
- Seeking equity release advice.
We hope this article helps you understand the pitfalls of equity release, but to speak to a specialist adviser about unlocking the tax-free money from your property, call our friendly team on 0800 096 2215, or request a call back.