What are the benefits?
Equity release is a good idea for some people as the system allows you to make use of the money engaged in your property with no need to sell or move home. The major benefit of equity release is that you can take advantage of the value of your dwelling while still being able to enjoy it and there is no need for you to sell or move as a result of being worried about your income.
You can use the money you get from your provider to do anything you want. You may need it to bolster your income to pay for household bills or pay off existing loans, or you may want to use for it a new car, a holiday or home improvements.
For retired people, who are relying on savings and a pension plan, equity release can bring peace of mind because it ensures either a regular income or a one-off cash lump sum.
Is equity release always beneficial?
Equity release can, in basic terms, be highly beneficial. However, this is not always the case and some people may end up paying more than they earn. For this reason it is important to make enquiries and get advice from a self-governing financial adviser or expert, before you agree to sign up to an equity release scheme. Equity release is usually beneficial for older people, as the likelihood of them dying or needing long-term care is higher.
Finding out if equity release is beneficial for you
Equity release is a life-altering judgment call and most financial experts and scheme providers will encourage you to think carefully previous to signing up. You can do research and find out about different policies online, contact providers via the telephone and arrange to see a financial adviser. You may find it helpful to take along details of plans you have seen and are considering, so that they can advise you which, if any, to go for. It is a good quality idea to have relevant information about the assessment of your home to hand to pass onto your adviser.