Top 5 reasons for releasing equity from your home

Top 5 reasons for releasing equity from your home main image

Have you ever wondered what you would spend the cash on if you took an equity release loan to release money from your home?

Did you know that if you are aged 55 and over you could release around half of your property's value in a tax tree lump sum?

Releasing equity (cash) from your home could help your retirement by way of a lump sum or a regular income or both, depending on the equity release scheme you choose.

We have teamed up with the Age Partnership, one of the UK's leading equity release providers who will compare the market for you and find the best equity release deal that matches your needs.

The Age Partnership have recently published the top reasons why their customers during the first half of 2017 took out an equity release loan:

The top 5 reasons why people took an equity release loan are:

  • paying off an existing mortgage
  • home improvements
  • paying off loans & credit cards
  • a gift to a family member
  • purchasing a new car

Taking a look at these in more detail it's easy to see why releasing equity from your home could be an enormous help with your finances.

Paying off an existing mortgage

A lot of people don't know this, that you can actually pay off the remains of an existing mortgage with an equity release loan, and therefore have no more monthly repayments to make, so you can enjoy all of your retirement income.

And don't forget depending on the value of your home and the amount of money required to pay your mortgage off there could still be enough to give you lump sum to use on just about anything you want.

Home improvements

Have you always wanted that conservatory or just have enough money to repair your property but never found the spare cash to do it? Well with equity release this could enable you to carry these out.

It could also be way of staying in your home and not having to move.

Paying off loans & credit cards

If you have loans and or card debts that you can never seem to get rid of, then an equity release mortgage could help you clear the decks and give you back control of your income.

Our word of warning here is to take care that once you have refinanced your debts not to start spending on your cards again, as you could find yourself back to square one, but with even more debts!

A gift to family member

Releasing some or all of the equity in your home to help a family member is becoming increasingly popular.

It could be to help your children or grandchildren buy their first property or to help other family members.

Purchasing a new car

And why not.

You have worked hard all of your life so why not treat yourself.

Of course purchasing a car may not be the only reason to release cash from your home, but it's one of the happy purchases!

Not making the top 5 reasons why people take an equity release loan is using the money for a holiday and travelling; once again this is a happy purchase and maybe part of the reasons why you have decided to take an equity release loan out.

Are equity release loans safe?

Equity release schemes are potentially a lifelong commitment and should not be under taken without considerable thought. The loans are regulated by the Financial Conduct Authority and the Equity Release Council overseas each scheme to ensure that it complies with rules and regulations.

In summary

Whatever your reasons the advisers at Age Partnership can guide you through the benefits and considerations of taking an equity release mortgage out, if you would like more information visit our Equity Release section of the website or complete the short form here and the Age Partnership team will contact you.

Following your initial chat with the adviser we would always recommend that you speak to your family and discuss with them what your plans are, after all, you don't want to give your children a nasty shock once you have passed away.

Thinking of unlocking the cash in your home?

It could make life easier

Try the Calculator here

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