What is Equity Release?
Put simply it is a way for people of generally 55+ to unlock some cash from their home without having to move. In most cases this involves a long term loan called a Lifetime Mortgage.
Retirement should be an enjoyable time but having enough money to finance retirement can be a worry. If you own your own home and have no mortgage or other debt on it, or the debt is lower than the value then you have equity in your home. With the rise in property prices over recent decades a significant number of those at or beyond retirement now find themselves in this position. For many it is the only substantial asset they have. Their savings or other investments may be small in comparison to the equity in their home or even non-existent. For these people, equity release can be a solution to their income needs. Funds raised from equity release are frequently used for:
- Paying for home improvements
- Giving financial help to family and friends
- Clearing outstanding mortgage or other debts
- Increasing regular income to pay bills or increase disposable income
- To help fund care in your own home
Individual reasons are always very personal and it's wise to discuss your situation with family first.