Retirement is a time for relaxation and enjoyment, but many people are finding it difficult to afford their living expenses. Equity release can provide you with the financial freedom that you need as well as some flexibility in your lifestyle.
Equity release is a loan, but it’s not like any other financial product. It falls somewhere in between borrowing from your home and taking out a mortgage. It allows you to withdraw money from the value of your property without having to sell it.
Transform Your Life with Equity Release
We all know that life can take a toll on our finances. However, what you may not know is how equity release could be the answer to your problems. Equity release releases the value of your property in exchange for cash and this is an option that could change your life.
Below we’ll provide 5 ways that equity release is something worth considering for those who are struggling with their finances.
#01. Financial Freedom
How does a person keep up with the cost of living as retirement approaches? There are many options, including continuing to work or receiving income from Social Security and other sources. However, there is one option that can provide financial freedom in old age without causing undue stress on either family members or friends: equity release.
Equity release allows for individuals who own their homes or have paid off mortgages to receive money by taking out loans against these properties’ values. This process requires minimal effort and provides an immediate boost while also being able to be repaid over time at low interest rates.
The security provided by equity release can help retirees manage their finances as they live out what may be a prolonged retirement with financial peace-of-mind.
#02. Tax-Free Cash
There are a lot of great reasons to get equity release. One is that you won’t have to worry about tax on equity release and what you sign is exactly what will enter your bank account. You can use the money you receive from a reverse mortgage for anything without worrying about taxes.
You have the freedom to spend your money however you like. Do whatever it is that will make you happy and fulfilled, whether this means using some of the funds for a vacation or investing in home improvements. You can use the extra money from paying off mortgages or debts as well.
#03. You’ll Be Able to Stay in Your Own House
Equity release is a good solution for those who want to downsize without the hassle of selling their current home. There’s no need to relocate with equity release. Part folks choose to put some of the money they’ve freed up towards home improvements. This could allow them to enjoy their retirement without having to worry about home repairs or adjustments as they get older.
As the old saying goes, Home is where your heart is and for some people that means a lot. By staying in their home during retirement and avoiding a major move at what can be an already stressful time of life, seniors are able to stay in not only the place they love but also remain stress-free.
#04. Pay When You Can
Nowadays, people often find themselves with insufficient expenses for daily life, savings, and pensions for their retirement years. Equity release is a way of securing funds from your home when you need. Moreover, you can take as little or as much time to pay back your loan.
You won’t have to worry about paying interest on the deferred amount of monthly repayments until you sell your home when you passed away or move into permanent long-term care. This means that monthly expenses will not increase, and it’ll be easy for you to plan with a budget. On the other hand, some people, choose the option to settle monthly payments in order to keep their debt low.
#05. No-Negative Equity Guarantee
Equity release plans serve as safety nets for the future. Too many homeowners are living with the fear of negative equity. The future housing market is unpredictable, and you never know what’s going to happen.
However, Equity Release Council members offers many equity release schemes that there will be no negative equity. This guarantee ensures that any debts you incur against your house will never surpass its value, so you have no worries about owing more than what your property was worth before.
Equity release can be a difficult decision, but it can also provide you with the peace of mind to enjoy your retirement. It allows homeowners to have access to money that they may need in the future without having to sell their house or take out a loan. The benefits of equity release are abundant, which is why it’s important that you understand all the options available to you.
It’s important that you speak with a financial adviser and seek an expert advice before deciding on this type of financing as there may be a lot of things to consider.