This week we’ve helped a client with understanding how an equity release works so they can begin #investing in #property

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‍We usually like to draw (literally, ha!) investment equity loans for clients as separate splits for the following reason:

• Doesn’t tie their properties up (cross collateralising) giving more flexibility and potentially larger access to sale proceeds if they chose to sell in the future.
• Provides a clearer picture of which loan is secured against which property.
• It gets the client purchase ready by providing deposit funds, avoiding the need to dip into savings through using equity instead, cash flow reserves are really important at the moment.
• I get to draw two pictures instead of one!

Our aim is to revisit this with clients in regular intervals of around 12 months with the view to move the equity loan in with the purchase loan reducing loan facilities from 3 to 2. This also frees up equity against the home to re-use again if this is part of a longer term strategy to build a property portfolio.

Remember now, this #creditadvice is general in nature and is not specific to any particular scenario. I do give out quite good specific credit advice though largely through drawn pictures and interpretive financial dance #financebroker