Can Equity Release Affect Your Benefits?
Your home may be repossessed if you do not keep up repayments on your mortgage.
Equity Release will reduce the value of your estate and can affect your eligibility for means tested benefits.
Equity release is a big decision for anyone. In fact, in financial terms, it may well be one of the most life-changing decisions you ever make. With that in mind, there’s a whole lot to consider and weigh up before you go ahead – no matter your position in life.
One question we frequently get asked here at Derngate Wealth Management is this: will my benefits be affected? If you’re on benefits at the moment and are wondering the same thing, we’re here to explain it all in simple terms. Let’s get started.
So, will my benefits be affected?
There’s no simple answer to this question. Basically, because most benefits are means-tested (meaning they’re granted or adjusted based upon how much you earn), taking out an equity release plan could affect how much you’re granted in benefits. Potentially, it could result in some of your benefits being taken away, too.
What’s right for me?
Just because you may lose some benefits (or some may be reduced), doesn’t mean equity release isn’t right for you. The thing is, everybody’s situation is different – and everyone has different goals for the future. Whether or not equity release is right for you still very much depends on these individual factors.
Depending on your situation, equity release payments may still outweigh the benefits you’re currently getting, providing a net benefit to you every month.
What we recommend
Working out whether or not equity release is for you can be a tricky process. That’s why we would always recommend seeking the advice of a professional before you commit to taking out an equity release plan – especially if you stand to lose benefits as a consequence.
Our friendly, experienced and highly knowledgeable Loughborough equity release advisors can help you not only work out whether it’s right for you, but track down a deal that suits your requirements. Learn more about how we could help you today or contact us to arrange a free initial consultation.