Did you see this at all on This Morning yesterday?
We would like to put truth to what was discussed and are happy that Martin was genrally warming to the idea of releasing money from your home in the right circumstances. Martin was speaking to somebody who was 68 years old and married with 4 grown up children. She asked if Equity Release was right for her as she wanted to release money so that she did not have to worry about money in the future. Martin said Yes.
Martin did still get a lot wrong and so we want you to know the facts.
The Good:
He rightly said that you should always consider downsizing first.
Martin explained that using the drawdown facility of a plan will reduce the amount owed over time.
It was good to hear that Martin was an advocate of using a lender that is under the Equity Release Council banner and to use an independent adviser.
The Bad:
Martin said that if you borrow £20,000 and live for 20 years - then £100,000 will be owed at that time - ACTUALLY on current interest rates it could be as much as HALF OF THIS!
There was no mention of any other option - just roll up plans!! These days you can choose to pay back fixed and flexible interest amounts over time to reduce or even repay the whole amount initially taken.
Martin did not ask if there were any other assets to consider utilising instead, or if the clients were on any kind of benefits at all. We would will always consider these options in the first instance.
What did you think??
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