How would you spend your equity release?
It’s totally normal to want to enjoy your retirement with a certain level of comfort. Whether you want to go on dream holidays or perhaps pay off your mortgage, now is the time to do it. Here is a look at the many ways you can make the most of equity release.
What is Equity Release?
As the term suggests, Equity Release is the process of releasing some of the equity (money) that is in your property. You are effectively taking out a loan against the value of your home and making a contract that sees you pay the loan back using the capital made from the sale of your home, usually after you die.
Top ways to spend equity release
1. Live more comfortably
If you want your day-to-day life to be more comfortable, consider using equity release to increase your monthly budget, possibly by depositing the equity sum into a savings account and setting up a standing order into your current account. Before you do this, do a full calculation of your pension income to assess what additional funds you may need. For others, a more comfortable life many mean buying a better car or going on nicer holidays.
2. Pay off mortgage or debts
You can actually use this money to pay off the remaining segment of your mortgage and credit cards. This means that you do not have to make any more mortgage payments or credit card payments, with the debt repayment technically deferred until after your death. Residents all over the UK are doing this to reduce their monthly outgoings. Wiltshire residents looking for the best equity release Marlborough has to offer should consider speaking to well-established IFAs such as https://chilvester.co.uk/equity-release/, who can advise further.
3. Home improvement
If you’re planning on remaining in your home throughout retirement, it makes sense to do all the things you have always wanted to do with it now.
4. Help family
For many people in the age 55+ bracket, helping children buy their own property is a major priority. Using equity release as early inheritance can mean getting them on the property ladder sooner.
However you choose to spend your equity release, there’s no doubt that it will be a great opportunity to improve either your own circumstances or the circumstances of your loved ones.