Building Blocks

· You must choose that equity which is flexible in nature. Under an inflexible plan, like the roll up mortgages, you can have access to the cash only after signing the plan. On the other hand, a flexible plan offers the following benefits-

1. It prevents you from spending too much money.

2. Moreover, interest is calculated on the amount withdrawn.

· You must enquire about the interest rates that you will be charged. It is best to look for fixed interest schemes.

· You must also determine the expected equity capital appreciation. Most of the banks and financial institutions are making huge profits by hiding facts from customers. You must therefore insist on knowing the details.

· You must enquire about the fees and charges. Most of these lenders make fools of their customers, taking advantage of their trust. You must therefore do thorough research to avoid getting duped.

· You must also find out about the redemption charges and additional charges. That equity which is flexible offers early repayment charges. The additional charges include broker/advice charges, legal fees and survey fees.

· Find out if it is possible to avail the facility of drawdown. It is also critical for you to know how long you can use the facility and how much you can drawdown each time.

· Also enquire if the plan offers a monthly income. Most plans do not but there is no harm in enquiring.

· Find out about the minimum age for availing equity releases. The income is calculated depending on the age.

· If you are married, it is best to choose a joint equity release plan.