Equity Release

Equity Release is one of the ways which can make retirement become more liveable even under uncertain circumstances. Taking money from your home after you have put many years of your life into purchasing and furnishing your living space is the best way to get the cash you need in your later years. There are both positive benefits and negative drawbacks of these type of loans.

The benefits of equity release are more evident when compared to other loans showing that the borrower can still live in the home until death or long term care is needed. The ability to receive a lump sum of the equity from your home allows for quite a bit of money to use during retirement or simply to take a holiday or trip. You can still move if you please if your new living arrangements are a suitable match to your current loan.

The drawbacks are few and manageable. You do need to be a minimum age to be eligible for an equity release loan. Some homes may be losing value in times of economic lows, meaning a lower lump sum of money in exchange for your home. The value of your home may plummet down during your equity release, removing more value from your home and affecting any inheritance you plan to leave. Your benefits towards welfare and taxation may change during the process.

Taking the value of your home in retirement towards an equity release is a great option to improve your post retirement life. Make sure to review all of your loan options before taking on a loan and let our advisors help you do this, they'll show you the full picture.