Who’s helping the Bank of Mum, Dad, Gran and Grandad?

The past 12 months have been challenging ones for first-time buyers.

Reduced salaries due to furlough, redundancies and restrictions on low-deposit mortgage options have made it even harder for young people to secure a mortgage.

So it’s no surprise that loved ones have turned to family for help. But what about the parents & grandparents who aren’t in a position to support their children with their savings?

 

The Bank of Mum, Dad, Gran and Grandad

 

While the Bank of Mum and Dad has become a pivotal ‘institution’ in helping younger generations buy their own homes, now aspiring first-time buyers are also turning to the Bank of Gran and Grandad to help fund their deposit.

In fact, last year, approximately 27% of equity release customers unlocked some of the value of their home to help their loved ones – with approximately £325 million being used to help younger members of the family onto the housing ladder.
With approximately 8.8 million employees furloughed as of April 2020 due to the coronavirus pandemic, family support is relied on more than ever.

 

How equity release could help

 

By releasing some of the equity that’s tied up in your home with a lifetime mortgage, the most popular type of equity release plan, you can pass some money on to your children or grandchildren with less impact on your own lifestyle or retirement plans.

The money released from your home is tax free. And with a lifetime mortgage there are typically no monthly repayments to make, as the loan plus roll-up interest is repaid when the plan ends.

 

Is equity release right for you?

 

If you’re looking to help a loved one with a financial gift, it’s important to consider your own retirement needs too. With increasing living costs and potential care costs in the future, it’s crucial to look at your own unique situation – something that Giraffe’s expert equity release advisers do.

They’ll explain how equity release works and ensure you consider your options. We also always encourage you to discuss equity release with your family. We can even engage with them to join in your consultation to ask any questions they may have.

And if equity release isn’t right for you, we’ll tell you.

Want to find out more?  Giraffe Equity Release

Things to consider

It’s a Financial Conduct Authority requirement you receive specialist advice from a qualified equity release expert before releasing tax-free cash from your home. Please read all our information at Giraffe Equity Release

Giraffe Equity Release offer lifetime mortgages, which is a loan secured against your home. It will reduce the value of your estate and may affect your entitlement to means-tested benefits

All of our plans meet the Equity Release Council standards and come with several protections, including the no negative equity guarantee, which means you’ll never owe more than your home’s worth


Call Giraffe equity release on 0800 622 6414 or send an enquiry here