Welcome to our first blog! Our aim is to share important insights and information with you on a regular basis. In this article, we look at various situations where releasing equity from your property could provide you with much-needed cash to enjoy your current lifestyle. It may also allow you to make plans for your future, so you can look forward to a comfortable retirement. Here are seven reasons why it might be worth considering equity release:
Essential home repairs
It’s that time of year when the heating system goes on and boilers are prone to breakdown. Heating repairs can be an expensive outlay, especially if you need to replace an entire system and install a brand-new boiler. Equity release could help with this and future home upgrades such as a roof replacement, renewing a dilapidated kitchen or converting a bathroom to a wet room or a walk-in bath.
Repay an existing ‘Interest Only’ mortgage
When an interest only mortgage comes to the end of its term, this can be a stressful time for homeowners. Are you worried about how you will be able to afford the balance? If you have been experiencing sleepless nights over the past few years due to mortgage worries, then an equity release mortgage might be the answer.
Living your chosen lifestyle
When you retire, you may find your income reduces substantially and this can sometimes be a bit of a shock. If you’re used to enjoying weekends away and driving the latest car model, going from having all the money you usually need to becoming seriously financially curtailed is a depressing experience. Living on a pension can prove difficult but releasing equity from your home could give you a financial buffer.
New caravan or campervan
Saving for a new campervan, motorhome or caravan can be a huge expense and certain loan payments could be unaffordable for many people. After all, your retirement is supposed to be an enjoyable experience, especially after all those hardworking years. Equity release may allow you to enjoy these expensive luxuries at a minimum monthly payment spread over the life of the mortgage.
Gifting a large deposit to your child
Whether this is to enable your child to get onto the property ladder, buy a car or pay for university fees, equity release allows you to keep your savings safely in the bank. You can either make the interest payments each month, a full repayment over a long period of time or you can allow the interest to roll up.
If you are in your late 50s or older, you may have built up a substantial amount of debt that you simply cannot seem to shake off. Drawing down on a large portion of your pension is not always a wise choice, as your pension is designed to support you financially each month through your retirement. In the right circumstances, equity release could be a suitable option for consolidating your debts.
We never like to think of having to pay out for medical care, but sometimes life brings unwanted health issues and long NHS waitlists might not be a viable option. Going private for your medical procedures, such as knee or hip replacements, or even serious conditions such as heart or cancer surgery, can be funded by equity release.
There are many other situations where equity release could free up funds for essential purposes. It’s always important to seek advice from a professional, independent mortgage broker – please see our Equity Release page for more details.
If you need advice on equity release, our friendly team are here to help. Talk to us today by calling 01455 238 650 or send us an enquiry.