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Is equity release a good idea?

Have you thought about how you could raise funds for your latter years?

If you’re over 55 and own your home, then the chances are you’ll have heard of equity release. The number of equity release products on the market has surged in the past two years, and with competition in the marketplace, interest rates have been driven to a new low. Many people are now finding that equity release is a great way of funding home projects, clearing debt or helping children find their feet on the property market.

Equity release has previously had very negative coverage in the media, but with significant regulation by the FCA and Equity Release Council, equity release products today have never been more secure and stringently monitored to protect consumer rights.
Limited savings or pension pot

Who needs equity release?

If you have a limited amount of savings to see you through later life or need to fund some specialist care whilst living in your home, then equity release may seem like the perfect option for you. You can decide how much you would like to release, ensuring that enough is left to pay off the remainder of your home when the time comes to sell. With many unsure about their pension arrangements and the state pension falling short for many pensioners, releasing equity from a property is a tempting prospect.

A good choice if you have no dependents

If you have no dependents to leave inheritance to, then equity release could be the perfect way of releasing some cash without having to consider how much to leave behind. You could fund that holiday of a lifetime or purchase the car you’ve always wanted!

Looking for cash to fund home improvements?

If you’re seeking a cash loan to pay for modifications or improvements to your home that will make your golden years easier, then releasing a sum of money from your home could be a great option. Many of us would prefer to remain in the comfort of their own home for as long as they are physically or mentally able, so using money to fund these types of projects is one of the most common ways people use the released money. New windows, an efficient boiler or installing a stairlift or downstairs bathroom are all home improvements that will make later living easier.
If you do want to leave your loved ones the inheritance generated by the sale of your home, or you are on state benefits it may be worth considering other options for generating equity, such as downsizing.

Want to find out more?

We’d love to hear from you. Simply use our handy calculator and see how much cash you could be entitled to. Or get in touch with one of our specialist financial partners and talk through your options.

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