What is Equity Release?
Equity Release is a means of turning part of the value of the home into accessible cash so that it can be used for whatever purpose it was intended.
Equity Release, unlike traditional mortgages offers the option of making no repayment until you or your spouse dies or moves out of the home.
With an Equity Release Scheme you:
- Have to be a certain age and own your own home
- Can get a lump sum, regular income and both continue to live in your home
What are the reasons for doing Equity Release ?
Norwich Union / Mintel Research 2005 state the main reasons for doing Equity Release are, in order:
- House improvement
- Holiday
- Insufficient iIncome
- Debt repayment
- Assisting fFamily
- Buying a car
- Healthcare
- Inheritance tax planning
The Alternative to Equity Release
These are various ways of increasing pensioners income levels:
- Claiming benefits available
- Grants
- Cutting living costs
- Dip into savings
- Downsizing
- Asking Family
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