For obvious reasons, the last six months have been an intense period for us all.
Some of us have been working from home every day, while many of us have tried to embrace new hobbies; whether it’s trying to keep up with free fitness classes online, refining the art of baking the perfect loaf of sourdough bread, sprucing up the flower beds, or planting some fruit & veg’ in the garden.
Time for a home makeover?
Whatever you’ve been doing to pass the time and avoid going ‘stir-crazy’, you’ve probably looked around your home and added ideas to your project wish list. Perhaps you’ve thought about that new extension to make your home more open-planned and spacious? You may want to make more room for returning grown-up children with a loft conversion? Or maybe you’re looking at a makeover to the kitchen and bathroom?
How will you fund your home improvements?
Whatever you want to achieve, one of the biggest considerations is; How will you fund your planned improvements to your home? Here are some of the often-used solutions;
- If you have one, you could call upon your flexible drawdown pension
- Maybe you could use some of your savings, or encash a portion of your investments
- You might wish to consider taking out a personal loan
- Or, you may wish to investigate equity release or taking out a lifetime mortgage
Each of these methods of raising a lump sum comes with its own unique set of conditions and potential outcomes, and you may wish to speak to an independent financial adviser (an IFA), to understand all the implications.
A new alternative on the market
Here at free2, as a financial service brand that’s dedicated to serving the over 55s, we’ve been looking closely at ways people may be able to keep hold of their savings and their pensions, and maintain equity in their homes, whilst improving their access to lump sums. Our first product offering, the Over 55s Unsecured Loan allows borrowers to take out a personal loan for larger amounts – from £15,000-£150,000 at fixed APRs, over set terms of 5-20 years. To qualify, you’ll need to be a homeowner, aged 55-70 and receiving guaranteed pension income, such as an annuity or final salary pension. All credit is subject to status, of course.
This is a type, duration and level of loan that’s not normally available on the market. Of course, once the loan’s paid off, your guaranteed pension income is yours to spend as you see fit; at no time does free2 have access to your pension and because it’s an unsecured loan, your home is not at risk. And, should the worst happen, free2 will write off the balance of the loan, so there’s no liability to your estate.
An alternative way to upgrade your home environment
To learn more about the main ways of raising a lump sum over 55 and to see how the Over 55s Unsecured Loan compares to other, better-known methods of raising capital, please visit us and download our fact sheet. Visit us at free2 today to find out more about your options.
Free2 Limited (trading as free2) is an Appointed Representative of RS Consumer Finance Limited (RSCF) which is authorised and regulated by the Financial Conduct Authority (the FCA). free2 is a credit broker, not a lender, and will only offer loans from RSCF – an offer of credit is subject to status and affordability. Example Loan: 60-year-old non-smoker, £30,000 over 10 years with fixed monthly payments of £359.05, interest rate 7.69% and an APR of 7.97%. Terms & Conditions apply.
This article was believed to be accurate at the time of writing and is intended to provide general information only to the reader – it does not constitute specific financial advice or advice of any kind. Before making any decision about your savings, investments and your pension, you should consult an Independent Financial Adviser.