Bridging the gap with equity release

Torbay Weekly

Kevin Watling, equity release specialist, mortgage and protection adviser at Molyneux Associates:

How much? Came the famous Yorkshire war cry as yours truly pulled up at the filling station to fill up and saw the price of diesel, at just a tenth of a penny underneath the £1.50 a litre mark!

Assuming that readers on equity release still think in gallons and drink in pints, that tots up to £6.75 a gallon in old money.

What was even more sobering was the realisation that the £75 it cost me to fill up after running on fumes was more than I paid for the combined cost of my first two motorbikes! Suzuki M15 and a Honda Benly for bike buffs!

So where is this going in relation to equity release, you ask?

My point is that generally in retirement the issue can be spendable income being relatively fixed when prices around it are going up?

So how do we bridge the potential gap of buying power dropping away or being unable to top up spent capital?

At the same time as bridging that gap, we can also hopefully allay one of the concerns around releasing money!

With many of the plans out there, rather than take out a large sum initially and then have 'lazy capital' earning next to nothing on deposit, it can be possible to take an initial amount and then have a reserve pot in place to take as needed.

Some lenders may have a minimum amount of, say £2,000 as an ad- hoc withdrawal, referred to as drawdown in technical terms.

The beauty of this is that the drawdown only then attracts interest when it is actually taken - effectively slowing down the way the release rolls up over the years, while giving you the top up to your income to top up the fuel tank!

One point raised in discussion last week was that how equity release has now evolved from being regarded as somewhat of a grudgingly taken desperate last resort to something that now is more readily accepted as a product to help improve life and lifestyle generally.

It should still certainly be respected but not necessarily feared!

Is it something that you could perhaps use? It costs nothing to talk, just get in touch with me to see - 35 years of my experience for maybe 35 minutes of your time`s not a bad swap!

Email, log on to or call 01803 659592