Call us
01242 697821

Blogs

Keep up to date with the latest news and our guides on all things mortgages. 

Looking to reduce your expenses and free up equity, is downsizing really an option for you?

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 adviceA 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

Related

Spring Budget 2024 summary: what are the key takeaways?

Spring Budget 2024 summary: what are the key takeaways?

On the 6th March, the Chancellor of the Exchequer, Jeremy Hunt, delivered his Spring Budget for 2024...

Read More >
Is this you? Mortgage case studies

Is this you? Mortgage case studies

Meet John, a 28-year-old working professional who has just landed his dream job in Bedford. He has b...

Read More >
Why get health insurance?

Why get health insurance?

We all know that the NHS is a vital safety net for people who need medical treatment. However, in so...

Read More >
Top tips: how to improve your chances of securing your dream home

Top tips: how to improve your chances of securing your dream home

Property buyers are forced to compete hard in many markets. So, how can you improve your chances of ...

Read More >
Home Insurance: The Ultimate Protection Plan for Your Castle

Home Insurance: The Ultimate Protection Plan for Your Castle

Home Insurance is an essential policy that provides peace of mind to homeowners by protecting their ...

Read More >
Key benefits and risks of lifetime mortgages

Key benefits and risks of lifetime mortgages

With Equity Release, your home can be a valuable source of retirement income. Releasing equity from ...

Read More >

What our clients say...


Fairview Financial Ltd is an appointed representative of The Right Mortgage Limited, which is authorised and regulated by the Financial Conduct Authority. Fairview Financial Ltd is registered in England and Wales no: 10912424. Registered office: 107 Promenade, Cheltenham, GL50 1NW.

The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.

@ 2020 by Fairview Financial

Our Fees        

A fee may be charged for mortgage advice. The exact amount will depend on your circumstances.

Our standard fee for mortgages is £395 and this is paid when the mortgage is offered. We charge a fee of £295 First-Time Buyers. Other fees may apply depending on the complexity of the work involved or loan amount. The maximum fee we can charge is £795.

Our standard fee for Equity Release is £895 and this is paid on completion.

We also receive a commission from the lender that will vary depending on the lender, product or other permissible factors. The nature of any commission model will be confirmed to you before you proceed. If we receive a commission, this will not affect the cost payable by you.

THINK CAREFULLY ABOUT SECURING OTHER DEBTS AGAINST YOUR HOME.

YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBTS SECURED ON IT.

BUY TO LET MORTGAGES ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.

EQUITY RELEASE: 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.


  • Back to top