If you want an effective way to borrow, there are several ways you can do this. While personal loans are one option, when you think about the advantages on hand with an equity release plan it may be the latter you are most inclined to take out.
Indeed, you may discover an equity release scheme to be a much more flexible way of borrowing money – largely because there is no minimal monthly repayment that you have to make.
Upon taking out a personal loan, you will automatically be required to pay back a certain amount of money each month until your debt is cleared in full. Fail to do this on even one occasion and you will receive a late payment fee, which could include the costs your loan provider has incurred to inform you that you have missed a payment.
Choose to borrow through equity release, however, and you will find that this is not the case.
As a general rule, there are no binding monthly payments that you have to make and as you'll be able to clear debts at a time suits you, fitting it around your other financial commitments shouldn't prove to be too difficult a task. Opt for equity release and your loan, plus all the interest that it accrues, will be repaid in full once your property is sold.
Equity release could also turn out to be a better way to borrow in terms of the manner the funds are released to you.
If you choose to take out a personal loan, the cash you lend will be deposited in a single lump sum. While this may be ideal if you are borrowing with the intention of funding a major one-off purchase, such as a car or a dream holiday, this isn't always the most suitable way to receive. For cases where you want to borrow money on a regular basis over a substantial period of time, equity release could well be a better choice.
Opt for a drawdown lifetime mortgage and you'll be able to unlock cash from your home as and when you need it. So if you're looking for a helping hand in meeting regular expenses, such as quarterly utility bills and monthly care home costs, this could be a useful option.
Whatever you're hoping to achieve by borrowing money, seeking out equity release advice is vital. In doing so, you'll be able to speak to a qualified expert who can guide you through all the options that are available and help you take out the product that is best suited to your needs.
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