Is Equity Release The Right Move For You?

Here at AAP we regularly work with older clients to help them release equity from their property so they can comfortably stay in their existing home with less financial strain and enjoy their retirement to the fullest potential. Often clients are releasing money to pay off existing mortgages, gift early inheritances, carry out home improvements and repairs or top up their income once living on pensions.But what happens when you no longer want to stay in this property and choose or need to move house?

Lifetime mortgages, also known as equity release products, later life interest only mortgages and repayment mortgages are all options for clients who may be moving house in later life.

I’m going to share a story with you this Christmas as you may know someone who could benefit from moving house to be nearer family, to downsize to a smaller property or just move to more suitable accommodation.

Bourne referred some clients to me earlier this year who were relocating from Wiltshire to Alton to be in a more central and less rural location for their later years. Alton is a fantastic market town with a vibrant community, great local amenities and an area already known to these clients.Whilst younger movers are interested in schools, job opportunities and upsizing, often our retiree clients are looking for convenient health services, social groups and good transport.

After a few months of waiting for a buyer for their rural property my clients were able to proceed on purchasing a suitable property in Alton to see out their later years.They are now settled in the heart of Alton surrounded by services and amenities on their doorstep.They no longer need to worry about the prospect of giving up driving in future as the transport locally is much better and they have close access to the doctors and town centre.

What many people don’t realise is that having a shortfall between what you are selling your current property for and what you wish to buy at need not be a barrier to a move.The later life lending market has numerous options for our older clients and this includes products suitable for roll up equity release, interest only mortgages and sometimes we even look at repayment mortgages for older borrowers.

We always encourage our older clients to consider having family or a trusted friend involved through this process.Whilst we undertake a full review of all our client’s circumstances before giving advice there is a lot of value in having the family involved on what may be a life changing house move. And if they are on board, they may even help pack up the boxes on moving day!

Because the advice we give is always face to face and tailored to each client it becomes a very personal journey we help them undertake. It is a rewarding journey we share when we see older clients approach us with trepidation and unease as they start to investigate what a move would entail in later life.Broken down into two or three meetings we start to work on possible solutions that would work for them at the present time but also looking ahead to what the future may hold in store and to future proof anything we do.

We consider their overall situation including affordability, effects of future ill health or death, needing to borrow more, property suitability and what their future changing needs may be.It really is a very holistic process and very different from working with our younger working mortgage clients.

If this is of interest to you, we’d love to hear from you. Age need not be a barrier to moving home.

This is a lifetime mortgage. To understand the features and risks please ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it.If you are in any doubt, seek independent advice

We are also a member of the Equity Release Council and adhere to the principles and standards as set by the Council.


Are you looking for advice on equity release? Contact Amanda at AAP Financial Solutions today.


Amanda Parsons has been a qualified adviser since 1998 and equity release qualified since 2005.