Equity release is an increasingly popular option for homeowners, particularly those approaching or just starting their retirement years.
In 2017, equity release lending surpassed the £3 billion barrier in its highest-ever annual figure.
What are the main reasons you might consider taking out an equity release product?
1. To pay off your mortgage
According to equity release broker Age Partnership, approximately one third of people use equity release to clear the balance on their existing mortgage. Doing this means that you’re no longer required to make regular repayments, significantly reducing your fixed monthly outgoings.
2. To help out your family
Another popular use of the funds made available via equity release is to help family members out financially. Perhaps you want to help your kids pay off their student debt or even get on the property ladder themselves? It is a way of passing on wealth while you are alive.
To find out a bit more about equity release, why not take a look at the website of an established financial advice firm such as https://chilvester.co.uk/equity-release/?
In terms of equity release Malmesbury has great potential because house prices currently average £432,813 and a significant number of these properties are mortgage-free and owned by people aged 65 or over.
3. To consolidate your debts
About 10% of people who take out equity release products use the money to pay off existing debts. This can help reduce pressure and remove the need to make loan repayments every month.
4. To fund home improvements
One in five homeowners use the proceeds from equity release to pay for home improvements, with loft extensions and new kitchens or bathrooms being the most popular choices.
5. To fund your lifestyle
Naturally, you want to enjoy retirement, so why not use the money released to go on holidays or cruises, spend more time on your hobbies, or buy a new car? Make the most of the money while you can still enjoy it!
6. To boost your pension
If, like many people, your pension pot isn’t looking as healthy as you had hoped, why not use the funds from equity release to top it up? This is a great way of boosting your regular income when you retire.
Please be aware that equity release will reduce the value of your estate.