Six equity release myths exploded

By Mike LeGassick, Independent Financial Adviser

If you’re in need of a cash lump sum, you may consider joining the thousands of people who have taken out an Equity Release plan, enabling them to borrow money against the value of their home.  Yet ‘urban myths’ about Equity Release still abound; so it's time to set the record straight.   

Myth 1:  You won’t own your home any more.

There are two ways to release the cash tied in up your home.  The first is ‘home reversion’ – and in that instance then yes, your home is sold to the home reversion company in exchange for cash and the right to remain living in the property. 

But the far more usual approach to equity release is a ‘lifetime mortgage’, covered by The Equity Release Council guarantees.  You borrow money against the value of your home, but the property remains yours.  The equity release company is granted a legal charge over your title deeds to ensure that any remaining debt is repaid to them when the property is sold.  But importantly the property is still yours and you can live in it for the rest of your life if you want to.

What the Scottish No vote means for your finances

by Steve Phillips, Independent Financial Adviser

So the Scottish referendum didn’t result in an independent Scotland; and the dust is still settling after the victory of the No campaign.  The emphasis now will be on ensuring that the whole of Scotland works together so that all political parties and communities benefit from still being within the United Kingdom.

But what about the financial perspective?