Equity release to fund retirement has risen by 70% in the past 5 years. Experts predict that there will be an increase over the next 10 years with more people using equity releases to cover their retirement vacations or renovating their homes.
With an equity release plan, you will be able to use the money all at once or opt to have instalments paid to you to help make things easier when you are home. Let’s look at how equity release money Supermarket works to simplify your retirement.
What Is Equity Release?
Equity release is when you have a percentage of the value of your home paid out to you as a lump sum or in monthly instalments.
It is essentially like a loan that you take to cover the costs of other expenses, but that allows you to live in your home while repaying the loan.
There are 2 kinds of equity release plans to choose from: a lifetime mortgage and a home reversion plan.
Can Equity Release Make Your Retirement Happier?
Yes, equity release can make your retirement happier because you will have additional cash to spend on things that you really need.
According to our expert in equity release, Jason Stubbs, many pensioners find the release of equity a way to fund their home renovations to make life easier after retirement or simply give them an additional monthly income.
Do I Need Advice Before Committing to Equity Release?
Yes, you will need to advise before committing to equity release.
It is advised that you ask a professional about how much you will be able to release and how you can make your money work for you.
A financial adviser can also help you decide on investments that you could pay for so that you have money in your account at all times.
What Do Key Customers Spend Their Equity Release On?
Key customers have spent their equity release on home improvements to make retirement comfortable.
Many spend the money on paying for their children’s or grandchildren’s education.
Some even use their equity release to go on vacations that they couldn’t take while working full time.
What’s the Minimum Property Value for Equity Release?
The minimum property value would be £70000.
You could increase the value of your property by making sure that it is appealing and that you can do any simple renovations before you release equity.
How Can I Find Out About Releasing Equity From My Home?
You can find out about releasing equity from your home by contacting a mortgage broker to help you.
Once you have had your home evaluated and know what it is worth, you can proceed with getting quotes and seeking lenders who can assist you.
Common Questions
Is Equity Release Safe?
Yes, equity release is safe.
With the correct help and a steady plan, you can make equity release work for you.
How Old Do I Have to Be to Release Equity?
The minimum age for equity release is 55.
If you are releasing equity with a partner, then at least one of you must be 55.
The oldest age you can be to release equity is 65, at which you stand a higher chance of qualifying for an equity release mortgage.
Conclusion
Equity release can make any retirement pleasant.
It takes the worry about money out of the way and allows you to do the things you could when you were working.
Many people do not plan appropriately for retirement, but equity release can remove the financial burden.
To find out if you could make equity release work for you, contact a broker or financial adviser to talk you through your eq
