Are you looking to reduce your expenses and free up equity but believe the only option is to simplify your living space by moving to a smaller property?
Recent research sheds light on homeowners' attitudes
Recent research suggests that you're not alone in considering downsizing. BUT, strong ties to your community and the security of familiar surroundings may lead you to thinking there are other options.
According to recent research conducted with 1,000 homeowners aged 45-plus*, most people aged 66 and above, who are at an ideal age to downsize, choose to stay in their homes instead.
But how?
While downsizing may offer potential financial benefits such as cutting bills, worries about falling house prices and losing touch with memories may cause you to hesitate. You may feel attached to the community you live in (23% of respondents agreed with you) and don't want to move, or even thinking about moving may seem exhausting (22% of respondents agreed). You may also think that you wouldn't see any financial benefit from downsizing if the estimated £9,611 costs were considered (16% of respondents agreed).
A Lifetime Mortgage can be the solution to staying in your home forever.
By staying in your home but using a Lifetime Mortgage to help, this can aid you with many things such as more support towards monthly bills, clear unsecured debt, money to help develop parts of your property that needs some love or improvements or even using the cash to help other family members.
It's important to recognize that your attachment to your property and community may grow as you age. The research found that 52% of those aged 75-84 said that their home provides reassurance as they know how everything works.
If you're considering downsizing due to thinking this is your final option, speaking with a specialist in later life mortgages can help you explore your options. This will provide you with a better understanding of all your choices, rather than just defaulting to downsizing. Choosing to take out a later life lending product also does not preclude downsizing in the future. In fact, modern Equity Release products include features such as downsizing protection. With the ability to serve interest (if you wanted to) older borrowers can carefully manage their borrowing to ensure they keep all options open as their circumstances may change through the years. However there is always a no negative equity guarantee in place.
Ultimately, your home is much more than a roof over your head. It can provide security, confidence, and reassurance as you get older. So, if you're thinking about downsizing, it's important to weigh the potential financial benefits against the security and comfort of staying in the property you love and the community you know.
SPEAK TO AN ADVISER
This is a lifetime mortgage. To understand the features and risks, 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. A fee may be charged for mortgage advice. The exact amount will depend on your circumstances.
Source: https://www.propertyreporter.co.uk/cost-of-living-crisis-fuelling-a-rise-of-over-50s-cashing-in-on-homes.html