After years of working hard we all deserve to be able to enjoy our retirement in comfort, without worrying about money. And sometimes it is also a good idea to treat ourselves after working so hard. This is why equity release schemes are proving so popular.
Below we list five reasons why you may want to consider taking out an equity release scheme. But before you do opt for a scheme you should do what most people taking out equity release schemes do and work out exactly how much money you can release. You can calculate how much you could access using an equity release calculator.
Five Things You Can Spend Money from Equity Release on:
1. Go on holiday - ever wondered what Australia was like? Keen to visit a relative around the world? Equity release has helped many people make that once in a lifetime trip and explore parts of the world they could only dream about before accessing money from their equity release schemes.
2. Pay off Loan Debt – it is a somewhat sad fact of life but many people enter into retirement with a number of debts left to repay. These can include home loans and credit card debt, as well as store card and car loan finance arrangements. Equity release lets you pay these off all in one go so you can begin to enjoy your retirement without having to worry about money. Think carefully before securing other debts against your home.
3. Paying off the Mortgage – the chances are by the time you reach retirement you will have had enough of paying your mortgage each month. Monthly mortgage payments can be expensive and a drain on any expendable income you thought you’d have when you retired. Many people use equity release to pay off any remaining mortgage in one go.
4. Home and Garden – when you reach retirement the chances are you will spend more time at home. For this reason many people like to spend some money doing up their home or garden in retirement. Popular choices include adding a conservatory, fitting a new kitchen, redecorating or landscaping their garden. Each of these measures can add considerable value to your home, whilst also making it easier to manage in retirement.
5. Help family and friends – many people take out equity release schemes to help their family out financially. This can take many forms, such as helping to pay for care for an older relative or, increasingly, to help their children get a foot on the property ladder. Equity release is often used to access cash that can then be used by the younger generation to put down a deposit on a home of their own.
There are numerous reasons to consider equity release as a viable way to fund your lifestyle in retirement. Thousands of people have gone through the process and decided that the schemes are right for them, but before opting to undertake a scheme it is highly advisable that you weigh up all the pros and cons of taking part in such schemes, speak with your loved ones, review your options and decide if an equity release plan is right for you.