The Equity Release Process
Equity release process is a complicated topic and one that many people don’t fully understand. In order to get the most out of your retirement, it’s important to be educated on this subject. Understanding what equity release entails can help you make an informed decision about whether this is something that you want for yourself and your family.
According to experts, one of the most common reasons people go for an Equity Release mortgage is because they need funds without selling up their property. Whether it’s due to illness or old age, some people need additional money on top of what they get from state benefits or pensions. Ideally, this should be used sparingly but sometimes there simply isn’t any other option when things happen outside our control like injury and accidents as well as potentially expensive medical treatments. If we don’t have enough cash reserves available then taking equity release out can be the answer.
It’s also worth knowing that equity release mortgages are not all about borrowing money to live on and there is a variety of options available from different lenders, including taking out time-limited loans or buying an annuity which pays you a regular income for life over a period of years in return for your property.
One option people sometimes overlook as they grow older is downsizing their home so it better reflects what they need at this point in their lives by moving into one with less space and less upkeep involved. This distributes wealth more evenly across family members who might have been living under one roof previously too, making things easier financially should any tragedy strike unexpectedly. It may even reduce future care needs if someone suffers deteriorating health.