Home Equity Release

While not something you may look forward to upon retirement, many retired folks in the UK find themselves falling back upon home equity release as a means of coping with finances in the absence of a regular income.
During retirement, your financial strength is put through quite a test. If you’ve planned well, you may find yourself enjoying good savings, wise investments, annuities and insurance plans as well as your pension. However, many people find that this is not the case, and retirement proves to be much more expensive than they’d anticipated. At such a time, owning a home or property can be a saving grace.

A home equity release can help you convert your fixed asset into liquidity, while still keeping a roof over your heads. They are financial instruments that let you either a mortgage against your property, or sell it for cash to a reversion company or equity release provider. There are currently two main types: Lifetime mortgages and Home Reversions. Both have some similarities:

1. You are paid a certain amount (a percentage of your property value) as a lumpsum or a periodic payment or installments.
2. You get to live in the house till you die or move into long term care
3. The loan is repaid from the sales proceeds of the house upon your death

A home equity release is safe and flexible and can turn your finances around. If you find yourself worrying instead of enjoying retirement, it is definitely something you should consider.