Is Equity Release a Good Idea?
Is Equity Release a Good Idea?
Equity release is the latest topic of conversation, but you might wonder if it’s a good idea right now?
We can confirm that it might just be the answer you’ve been looking for as it allows you to access the cash tied up in your home while still living there.
Thanks to our most recent research, we can help you decide if equity release is a good idea in 2022.
In this article, you’ll learn:
- What equity release is.
- The types of equity release plans available.
- Is equity release a good thing?
Our researchers have analysed over 690 equity release programs to establish their benefits and drawbacks and establish why 1 retiree takes out an equity release product every 12 minutes in the UK.
Find out now!
Before You Start Reading….
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What’s Equity Release?
Equity release is a range of financial solutions developed for seniors.
These financial products allow homeowners over the age of 55 to access the money tied up in their homes while still living in them.
Types of Equity Release Plans?
There are 2 main types of equity release plans: a lifetime mortgage or a home reversion plan.
Here’s more about these.
Lifetime mortgages are a type of equity release scheme that allows you to access some of the wealth in your home.
With a home reversion plan, you raise funds by selling all or part of your house while living in it rent-free until you pass away or go into permanent care.
Is Equity Release A Good Thing?
Equity release can be a good thing for homeowners over 55 who want to access extra funds to use and enjoy during their retirement.
You can use equity release to pay for home upgrades, home care bills1, an early inheritance for your children, or pay off other debt you may have.
Equity release is not a good thing for everyone, but you can consult your financial adviser to help you determine if it’s good for you.
When Is Equity Release a Good Idea?
Equity release is a good idea if you need extra money for a more comfortable retirement or to fund other retirement activities you may want to pursue.
If a financial adviser has told you that your income and other savings won’t get you through retirement, then it’s a good idea.
Is There a Downside to Equity Release?
There’s a downside to equity release, and it’s that the overall cost ends up being very high.
If you have a lifetime mortgage in place for an extended period, like 10 or 20 years, the interest that accrues can mean you could owe double what you initially borrowed.
It’ll significantly reduce the inheritance that you leave to your beneficiaries.
Your eligibility for means-tested state benefits could be negatively impacted.
Is Equity Release Right for Me?
Equity release can be right for you if you don’t have enough money to retire and be comfortable; nobody wants to struggle through their old age.
To decide if equity release is right for you, consult with your financial adviser2, who’ll tell you if it’s an option you should consider.
Is Equity Release Becoming More Popular?
Yes, according to the most recent statistics, equity release is becoming more popular amongst UK homeowners over the age of 55.
It’s an excellent option to look at if you own a home and need some additional income to fulfill your dreams3.
Is Equity Release a Good or Bad Idea?
If equity release is a good, or bad idea will depend entirely on your financial circumstances.
You should meet with your financial adviser to get their assistance when you decide.
Nothing is more distressing than worrying about money, especially in your golden years.
Taking advantage of equity release is one of the best ways to ensure that you’ll have enough cash during your retirement.
How Much Can You Release?
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