Any existing mortgage will need to be repaid first, however the rest is tax-free cash, which you can use for anything you wish.
This means that equity release can be a great way to get more from your retirement. You can use the equity that you release to pay for the things that will make your retirement more rewarding. While there are no restrictions on how you spend this cash, it is generally used to meet big expenses that will make a real difference to your life. Here are some of the most popular reasons for releasing cash…
Your home is your castle, so it’s understandable if you’re looking for ways to modernise or otherwise improve it. Nothing beats the feeling of a home that looks and feels exactly the way you want it to, and equity release can be used to meet the costs of surprisingly expensive home improvement projects.
Fancy holidays abroad are a retirement fantasy for many, and equity release can help you to make that happen. You could also use the money to visit a relative that has moved away, or treat your family to a break.
The stress of monthly debt payments can make it difficult to enjoy other parts of life, and could even lead to struggles with other monthly expenses. Equity release can be used to repay existing debts and relieve some of this monthly burden. You should always think carefully before securing a loan against your home.
Helping your family can be one of the best feelings in the world, giving you the chance to show how much you care by helping them to achieve a milestone or repay a debt. Gifting a living inheritance, and enjoying your loved one’s reaction, could be a particularly rewarding way to use the money released from your home.
Leaving the home that you love for long-term care can be an extremely difficult decision to make. It’s also becoming increasingly difficult to secure a place in many care homes. An alternative could be to receive care within your own home, and equity release can help you to pay these costs. You could also use the funds to make necessary accessibility changes to your home, subject to the lender’s agreement.
A new car may save you money in the long run, with fewer repairs needed and less money guzzled up by fuel costs. However, it still requires a substantial upfront investment, and this is where equity release may help.
Remember, equity release is a big decision, and we recommend that anybody considering it reads our ‘is it right for you?‘ page before going ahead.
Equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits. The most popular type of equity release, a lifetime mortgage, is a loan secured against your home.