Downsizing as a method for repaying a mortgage can sound like a perfect plan when the decision is years ahead. The reality is that in many cases, when the time comes, clients do not actually want to leave their homes. Equity Release could be one if the options to explore if it seems that moving is the only alternative:
‘New research from Bower Retirement shows that nearly one in five would-be downsizers change their minds and decide to release property wealth through equity release. The main reasons for not going ahead including the cost of moving, with 55% of Bower advisers saying customers change their minds because of the expense. Emotional reasons are also a major issue for not going ahead with downsizing with around half of Bowers’ advisers saying clients did not want to move away from family and friends. Andrea Rozario, chief corporate officer at Bower Retirement, said: “Downsizing is logical and sensible and can work for some over-55s homeowners, but only if they can find the right house at the right price. But there are financial issues to deal with when moving house with stamp duty alone costing 5% on house prices above £250,000 which can make the decision to move uneconomic. Buying a £300,000 home would cost around £5,000 in stamp duty. It is also not just a financial calculation as there are emotions involved when moving home with the risk of losing touch with family and friends making downsizing seem a bad idea for many.” ‘
(What Mortgage, June 2017).
By Clicking on the above link, you are now departing from this site. Neither Sarah Ferrell nor Intrinsic are responsible for the accuracy of the information contained within the linked site.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Sarah Ferrell Equity Release and Mortgage Advice is a trading style of Ferrell Financial Limited is authorised and regulated by the Financial Conduct Authority.
Ferrell Financial Limited is registered in England and Wales, No. 11192749. Registered Address: 7 Clarendon Place, King Street, Maidstone, Kent, ME14 1BQ.
The information and content within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK.
The Financial Conduct Authority does not regulate on buy to let mortgages.
If you have a complaint about your adviser, or any financial advice you have received from your adviser, please the Financial Ombudsman Service http://www.financial-ombudsman.org.uk
At Ferrell Financial Limited we respect your privacy and the confidentiality of your personal information.
Sarah Ferrell Equity Release and Mortgage Advice is a trading style of Ferrell Financial Limited, which is authorised and regulated by the Financial Conduct Authority.
We collect personal information about you when you use our website, contact us about products and services, visit a financial adviser or carry out transactions with us. We collect information that is necessary for the provision of financial advice and administration of the products or services you are seeking, and for legal and regulatory purposes. We also collect and use your personal information where necessary to improve our services, our business processes, and to communicate with you. For the provision of advice we need to collect sensitive information, such as information about your health. To do this, we will ask for your consent.
We will always keep your data safe and secure, and where we share your data with other businesses to fulfil the purposes above we make sure they follow our instructions and keep your data secure. We will never sell your data, and we will not send you communications about unrelated services without your consent.
Our Privacy Notice, holds much more information about how we collect, use and share your personal information. There is also information about the rights you have over your personal data, and how to contact us if you have any questions.