Here’s what Martin Lewis thinks about Equity Release
When it comes to managing your finances, Martin Lewis is a bedrock of sound advice. But what does the Money Saving Expert founder say about equity release?
Journalist, presenter, campaigner and founder of UK consumer website, Money Saving Expert, Martin Lewis has made an impressive career out of helping people to make smart choices when it comes to saving money. As a result, millions of Brits regularly look to him for trustworthy, unbiased advice when it comes to handling their finances. So, let’s take a look at Martin’s hot take on equity release!
What does Martin Lewis think of equity release?
Martin Lewis does not explicitly recommend equity release, and he’s right not to do so. This type of mortgage product is not for everyone, and it would be wrong to suggest that equity release can serve as a cure-all to your financial woes!
In a nutshell, Martin Lewis believes that over-50s who are considering equity release should arm themselves with all of the facts regarding lifetime mortgages and make sure that they have considered any alternatives – such as downsizing or selling assets – before they opt for a lifetime mortgage. Pretty good advice, if you ask us!
Martin advises that borrowers need to be conscious of the fact that equity release products will impact the amount of inheritance they are able to leave loved ones. Ultimately, however, he stresses that it’s essential for you to prioritise your own standard of living first and foremost when making your decision. If equity release will help you to have a more comfortable, enriching retirement, it’s definitely worth considering.
As such, if downsizing is not an option, you have no saleable assets, and poor cash flow is having a detrimental impact on your quality of life, Martin would advise you to seek out the help of a professional adviser and consider equity release as a viable solution to financial challenges you may be facing in later life.
Decided to investigate equity release further? Here are Martin Lewis’ tips for smart borrowing
- Make sure to only borrow what you need
Martin’s number one tip when it comes to equity release is to only borrow what you need. If you want to be super savvy, you might want to consider a drawdown lifetime mortgage, as this type of product gives you full flexibility to access your money as and when you need it. With this product, you’ll only pay interest on what you borrow, and not on the funds being held in reserve, thus shrinking the size of your loan.
- Check your lender is a member of the Equity Release Council
This is an important one. It’s essential that you check your lender is a member of the Equity Release Council (ERC). Lenders with membership to the ERC will provide you with a guarantee that you’ll never owe more than the value of your property, amongst other safeguards.
- Seek independent financial advice
Here at North East Equity Release, we are qualified advisers who specialise in arranging lifetime mortgage products for our clients. We have access to the whole of the market and can find you the most suitable lender and equity release plan for you.
- Double-check your benefits
Before opting for a Lifetime Mortgage, check that this type of loan will not impact any benefits that you are currently in receipt of, such as pension credits or universal credit. Here at North East Equity Release, we can help you to clarify this.
Already an existing lifetime mortgage customer?
If you have previously taken out an equity release loan some years ago, Martin Lewis recommends that you take a look at whether or not you can switch to a better deal. Over the last decade, interest rates have fallen, which means you might be able to save some money by switching. Chat with us to find out if this is an option for you.
*Sourced from Martin Lewis’ moneysavingexpert.com article Should You Equity-Release?
North East Equity Release can help you to find the right Equity Release product for your needs. Get in touch today.
