With the cost of living rising and house prices increasing, it’s not surprising that so many over 55 homeowners are now looking to equity release plans to unlock money from their most valuable asset, their home.
We’ve put together the 5 reasons to take out an Equity Release Plan:
1. To tackle the rising cost of living
With the cost of living having gone up 25% in the past five years, the financial burden placed on many has been significant. It’s suggested that 1/5 of people retiring this year will be below the poverty line.
2. To clear outstanding debts
More and more people over 65s are retiring with mortgages and credit debt, without the funds to pay them off. Five times as many pensioners are going bankrupt than a decade ago.
3. To combat poorer pensions
With tighter budgets and higher costs, people are struggling to save enough money for retirement.
4. To use as an early inheritance
More and more retirees are releasing the equity in their home in order to help out family and loved ones financially. By releasing a lump sum, you could help your children or grandchildren onto the property ladder or clear any debts.
5. To defuse the interest only time bomb
More than a million people with interest-only mortgages face financial stress when the time comes to pay them off and the funds aren’t available. Equity Release can be a solution to defuse the interest only time bomb.
Equity release plans are currently helping thousands of homeowners enjoy a more comfortable retirement ; between January-June 2013 over 55 homeowners collectively released £473 million. Taking out an equity release plan could be the key to unlock the door to your retirement, by releasing tax-free cash in your home to spend as you wish.