Is an Equity Release Loan Right For You?

As equity release loans become more widely available to homeowners aged 55+ in the UK you could be in two minds about whether to pursue a loan further – on the one hand, you’ve worked all your life to pay off your home and a loan would put you back to square one. But on the other hand, your property is your biggest asset so why not use it as part of your retirement plan and enjoy it like any other savings. Deciding whether an equity release loan is for you firstly depends on how you feel about this.

Living your retirement dream

Most people dream of their retirement as having the opportunity to do all of the things they never had the time and money to do while they were busy working and raising a family. However, in many cases the reality of retirement is different and sometimes things don’t quite work out as planned. Once you hit retirement, the money you do have tends to be spent on things you didn’t anticipate such as health problems, house repairs or increasingly expensive household bills. No matter how economical you’ve been with the small amount of money you do have, something always seems to come up and you’re left feeling shortchanged.

An Equity Release loan can change your life

If you’re reaching retirement years and still struggling with the day-to-day costs of living then it might be worth giving an equity release loan more thought as it would allow you to unlock the equity in your home so you can achieve your retirement dream. So, before you decide whether releasing equity on your home is for you? Ask yourself the following questions:

• Do you own a property worth at least £50,000?
• Do you have swelling expenses that you struggle to meet from your current savings, or do you need a lump sum of cash quickly?
• Do you struggle to pay the day to day bills?
• Are you unconcerned about passing the full value of your property on through your will?

An equity release loan can change your life for the better but there’s also a lot to understand and a lot to consider before you make a decision. Your first step would be to contact an independent equity release specialist to find out more about equity release and if it is suitable for you.

Related posts:

1. Release Equity Calculators
2. Why should I apply for an Equity Release Scheme?
3. Get the equity release facts with impartial, no-obligation advice
4. Is an Equity Release Lifetime Mortgage for you?